As expected Janet Yellen’s first FOMC statement showed another $10bn taper (more tightening according to Jim Bullard) but the wordy shift from quantitative thresholds to “we’ll know it when we see it” qualitative guidance is relatively dovish (despite improved economic outlooks):
- *FOMC SEES `SUFFICIENT UNDERLYING STRENGTH’ IN ECONOMY
- *FOMC SAYS IT WILL LIKELY REDUCE QE IN `FURTHER MEASURED STEPS’
- *FED: LOW TARGET RATE APPROPRIATE FOR CONSIDERABLE TIME POST-QE
- *MORE FED OFFICIALS SEE AT LEAST 1% FED FUNDS RATE END OF 2015
- *FED DROPS 6.5% JOBLESS THRESHOLD FOR RAISING FED FUNDS RATE
While Bernanke’s last meeting appeared full of disagreement; this time less so (as Plosser and Fisher appeared not to dissent). Full redline to follow.
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