The Fed emerged from its two-day meeting yesterday afternoon with a message that was a little unsatisfying: The economy keeps getting better, they said, but not so much better than we can change our tactics. "Economic activity has picked up following its severe downturn," read the Fed's report. "Conditions in financial markets have improved further, and activity in the housing sector has increased."
But conditions haven't improved so much that the Fed is taking its foot off the gas. The Fed is still planning to end its mortgage-bond purchase program - but it will keep going past the end of the year, longer than had been originally announced. They'll also keep interest rates at their near-zero levels for an indefinite period.
This is one of those situations that suggests you should watch what someone does rather than what someone says. When the Fed feels it doesn't need to do things like buy up mortgage debt, then we'll believe the economy has really turned a corner.
If you'd like to read the Fed's full statement, you can find it here.
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