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Full text of fed statement, see the last sentence


*FOMC HOLDS FED FUNDS RATE TARGET AT 0.25% (AS EXPECTED): LOW FED FUNDS LIKELY TO REMAIN THROUGH MID-2013; VOTE WAS 7-3, FISHER, KOCHERLAKOTA, AND PLOSSER DISSENT AGAINST CHANGE IN "EXTENDED PERIOD"
- *** Currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.

- Voting against the action were: Richard W. Fisher, Narayana Kocherlakota, and Charles I. Plosser, who would have preferred to continue to describe economic conditions as likely to warrant exceptionally low levels for the federal funds rate for an extended period

- Temporary factors only account for some of the weakness; sees somewhat slower pace of recovery

- Committee now expects a somewhat slower pace of recovery over coming quarters than it did at the time of the previous meeting and anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate.

- Indicators suggest a deterioration in overall labor market conditions in recent months, and the unemployment rate has moved up. Household spending has flattened out, investment in nonresidential structures is still weak, and the housing sector remains depressed. However, business investment in equipment and software continues to expand. Temporary factors, including the damping effect of higher food and energy prices on consumer purchasing power and spending as well as supply chain disruptions associated with the tragic events in Japan, appear to account for only some of the recent weakness in economic activity

- Inflation picked up earlier in the year, mainly reflecting higher prices for some commodities and imported goods, as well as the supply chain disruptions. More recently, inflation has moderated as prices of energy and some commodities have declined from their earlier peaks. Longer-term inflation expectations have remained stable.
- Moreover, downside risks to the economic outlook have increased.