With modest positive growth adjustments expected, a continued taper (of $10bn), and no "rate-hikes-are-imminent" warnings, the FOMC statement provides more dovish confidence.
- FED REPEATS LOW RATE LIKELY FOR CONSIDERABLE TIME AFTER QE ENDS
- FED SAYS HIGHLY ACCOMMODATIVE POLICY `REMAINS APPROPRIATE'
- FED TAPERS BOND BUYING TO $35 BLN MONTHLY PACE FROM $45 BLN
- FED: 2014 GDP GROWTH OF 2.1%-2.3% VS 2.8%-3.0% IN MARCH
So everything's fine, taper is on... but we are slashing growth this year dramatically. Pre-FOMC: S&P Futs 1933, Gold $1271, 10Y 2.62%, 2Y 0.46%
The redline from the April statement shows barely any changes, and certainly all the qualitative language is virtually untouched.