The projections are up, and I think they are shocking:
In contract to the tone of the statement, this is a significant downward revision to the forecast for not just this year, but next year as well. Moreover, they expect no meaningful progress on the unemployment rate and the PCE inflation forecast remains centered well below 2%.
So, the basic analysis done by those expecting QE3 was correct. The forecast was revised significnatly downward, with no change in inflation, and downside risks have increased. But the Fed did not follow through on the logical conclusion to pursue QE3.
What exactly is the bar to additional QE if this is not it?
