• 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