As the FOMC begins their 2 day meeting, the key focus I believe is whether they leave in the word “exceptionally” in describing the low levels of the fed funds rate that will exist for an “extended period.” With the economy still fragile and a long ways away from a normalized rate, we know they will stay low for awhile, it’s just a question of how low. In another indictment of Fed and US government policy and the direction of the US$, the Reserve Bank of India bought 200 tons of gold from the IMF, about half of all the gold the IMF announced they were going to sell in Sept. This increases India’s gold holdings by 55% and further diversifies their reserves. The RBA expectedly raised rates by 25 bps to 3.5% as they “gradually lessen the degree of monetary stimulus” now that the “risk of serious economic contraction has passed.”