Today's FOMC results were fairly tame, as US equities and Treasuries took the news in stride
Today's FOMC results were fairly tame, as US equities and Treasuries took the news in stride. As expected, the Fed is tapering its bond purchases by $10 billion a month. Total bond purchases have now been trimmed from $85 billion to $35 billion. Interest rates are also expected to stay at near zero levels until 2015. Once again, nothing new here - the Fed statement looks almost exactly like the month before. The Fed's short-term target interest rate increased slightly to 1.13% from 1% at the end of 2015. Meanwhile, the long-run rate was lowered from 4% to 3.75%. Neither rate forecast change is that significant. Long-term growth is still projected to be 2.1% to 2.3%. As I mentioned yesterday, CPI's unexpected increase was not going to sway the Fed. Yellen will remain dovish as long as possible. (VIEW LINK)
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