FOMC takeaway: the diminishing downside risks noted in the statement suggests a reduction in QE purchases FOMC takeaway: the diminishing downside risks noted in the statement suggests a reduction in QE purchases is a real potential over the second half of the year. That has weighed on stocks and bonds, and given the dollar a boost, as one would have expected. Major wildcards to a pullback in QE as soon as the September FOMC meeting (analysts still believe it will be at a meeting with a press conference) including potentially negative effects, especially on jobs, from sequestration, as well as from further weakness in prices. There are also some concerns over the effects of rising rates on the economy. Net-net, Fed policy will continue to be a work in progress and dependent on the data.