Policy deliberations in September and October From my perspective, the outlook for future economic growth had thus weakened appreciably by the time of the September FOMC meeting, and the downside risks associated with that weakened outlook had increased markedly. Most notably, the incoming data and the continuing strains in mortgage markets suggested that the outlook for housing activity had become gloomier.
Moreover, although the data in hand did not provide direct evidence of spillovers from the housing sector to other segments of the economy, a heightened sense of uncertainty about economic and financial conditions had the potential to lead households and businesses to be cautious about spending.