Minutes of FOMC Jan 2010 Meeting

The minutes for the December 15-16 FOMC meeting showed a number of areas of debate internally within the Fed even though the latest policy vote was unanimous. The Fed governors and District presidents were split on whether inflation risk was on the upside or downside, although they agreed that underlying inflation currently is subdued. Interest rates remain on hold for some time although debate is heating up over what to do with the sharply expanded balance sheet. There was a modest upgrade on the overall economy in terms of downside risks were seen as "diminished a bit further." "In their discussion of the economic situation and outlook, meeting participants agreed that the incoming data and information received from business contacts suggested that economic growth was strengthening in the fourth quarter, that firms were reducing payrolls at a less rapid pace, and that downside risks to the outlook for economic growth had diminished a bit further." However, they also noted that while layoffs were slowing, few firms were actually hiring. One positive, however, was a pickup in the hiring of temp workers. ....