The key amendment to the FOMC's policy statement shifted its focus from the weak economy to the...

|By:, SA News Editor

The key amendment to the FOMC's policy statement shifted its focus from the weak economy to the possibility of disinflation: "The Committee... is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate." The focus shift is important, because it allows the Fed to double down on QE without having to imply further economic weakness - which could counteract expansionary measures.