Despite acknowledging the evident slowdown in US economic growth, the Fed declined to take any additional action at the conclusion of the two-day FOMC meeting today. It did, however, offer a hint that it might be prepared to do more at the next meeting in mid-September. A new round of large-scale asset purchases is still the most likely option, but we wouldn't rule out a cut in the interest rate payable on excess reserves or the introduction of a new "Funding for Lending" programme.
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