The Federal Reserve Bank of New York seal
The Federal Reserve Bank of New York seal - 

Jeremy Hobson: So the markets got what they were expecting from the Federal Reserve. The central bank is doing the "twist" -- shifting its investment portfolio in an attempt to bring down long-term interest rates, to make mortgages more attractive, and safer investments like bonds less attractive.

But as Marketplace's John Dimsdale reports, the focus isn't on what the Fed is doing, but rather what the Fed is saying about the economy.

John Dimsdale: Even though interest rates are already at record lows, the Fed is trying to make borrowing more attractive.

Rob Carnell, chief international economist at ING Bank, doesn't think it'll make any difference.

Rob Carnell: I think the real purpose of "twist" was to deliver something to a market that was desperate for some sort of response.

But judging from falling stock prices ever since the Fed's announcement, the markets were not impressed.

The Fed also raised red flags about the economy's future, concluding there are significant new risks. Carnell says that shouldn't be news.

Carnell: I don't think they know anything that we don't know. They may have changed their views slightly since last time they met. But I think the market's well ahead of them in expecting growth to come in on the soft side.

By warning about a bad economy, Carnell figures the Fed is setting up the case for even more intervention in the future.

In Washington, I'm John Dimsdale for Marketplace.