Fed’s ability to aggressively deal with further economic shocks is beginning to run thin
Fed unlikely to raise rates until the first quarter of 2011
Job market, consumer spending improve
Regulators had no means of preventing failure
Fed offers different inflation outlook than Bank of Canada
Guidance incorporates principles issued by the Basel Committee
Economists expect interest rates hikes later this year or early next year
Moderate economic growth will lead to only a slow decline in U.S. unemployment rate
Move will encourage U.S. banks to rely on private funding markets for short-term credit
Cautious consumers will make for modest recovery