• Inflation Highly Uncertain, was bad, but now within the range associated with price stability
  • Economy = bad, will be bad through 08 and "into '09"
  • fed will "need to consider if current stance in policy remains appropriate"
  • mentioned increase policy strength (using more arrows in the quiver)
  • one of those measures was the TARP in conjunction with treasury.
  • have it = gonna use it, soon
  • results of Tarp could be a return for tax-payers


Dollar moved lower

Stocks Moved Lower

MBS steady

Treasuries Improved