The Fed took a neutral tone in its latest directive, noting that
there are both risks to inflation and growth. The Fed noted that
although the economy grew in the second quarter, labor markets have
"softened further" and financial markets remain under "considerable
stress."
The FOMC believes that inflation will moderate later this year and in 2009.
The stock market traded in choppy manner following the release, and is currently trading modestly higher than pre-FOMC levels.