At the FOMC meeting yesterday, no special measures were taken. There was no QE3 to announce. The “twist” (selling shorter duration Treasuries for longer duration Treasuries; buying mortgages) is the best they’ve got. The Fed did offer some much stronger language about the economy’s problems, so there is that. Dr. Doom, among others, is not optimistic. Europe is in crisis.
TRANSLATION: “We’re out of bullets.”