FOMC meeting: main moments
- Fed tapers QE from $35B to $25B.
- Rates held at 0-0.25%.
- The odds of persistent inflation below 2% ‘diminished somewhat’.
- Inflation has moved “closer” to long-run objective.
- No more reference that the unemployment rate is elevated.
- Accommodative policy may be appropriate for “considerable time” after asset purchase program ends.
- Charles Plosser, the hawkish president of the Philadelphia Fed, dissented in a 9 to 1 vote because he thought the intention to keep rates low for a considerable time after the Fed stops buying assets does not reflect “considerable economic progress”.
USD bulls obviously wanted more.