US markets are reacting positively based on the what the Fed didn't do

US markets are reacting positively based on the what the Fed didn't do. That is, the central bank did not change its considerable time language regarding how long the Fed Fund rate will remain at its current level after QE ends. Many thought the Fed would become slightly more hawkish now that the US economy has been showing strength for several continuous months. However, Yellen and the Fed believe there's still too much slack in the labor market to change the time table for hiking rates. The Fed also commented on inflation running below the long-run objective, as opposed to moving somewhat closer in the last statement. Asset purchases were also reduced by another $10 billion and will end entirely in October. Two FOMC members voted against the policy action, but Fisher and Plosser have been hawks for months (and have been wrong). (VIEW LINK)