Highlight of June 19, 2013 Fed Statement

The text of today’s FOMC statement is here.

It says, in essence, that things are slightly better. The $85 billion/month expansion of money supply will continue.  Monetary policy will remain accommodative as long as unemployment stays above 6.5%.  The Fed will be watch inflation and unemployment – not exactly surprising.

Foe me, the most telling part of the statement is this brief phrase in the first paragraph, “but fiscal policy is restraining economic growth.”  Let’s see if that gets anyone’s attention.