Federal Reserve Statement 110809 (Click for text)
Note especially the first paragraph which describes current economic conditions. Also note the the Fed says that:
1. Downside risks to the economic outlook have increased
2. They anticipate keeping interest rates exceptionally low for the next 2 years at least
3. They will continue to reinvest maturing securities in their portfolio rather than gradually lowering their huge holdings
4. They Fed is prepared to employ their policy tools as needed, leaving the door open to do QEIII at some point
5. There were 3 dissenters on the board, the most ever, implying that the board is badly divided