The FOMC statement once again had a little for everyone but critically lacked the all-important- "we'll print now and to infinity". Key headlines from the statement, via Bloomberg:
- *FED SAYS ECONOMY `EXPANDING MODERATELY'
- *FED SAYS INFLATION `HAS PICKED UP SOMEWHAT' ON ENERGY
- *FED SAYS GROWTH TO STAY MODERATE, `THEN TO PICK UP GRADUALLY'
- *LACKER DISSENTS FROM FOMC DECISION
- *FED SEES `SIGNIFICANT DOWNSIDE RISKS'
- *FED SEES `EXCEPTIONALLY LOW' RATES AT LEAST THROUGH LATE 2014
Pre-Fed price levels:
ES 1382, IG 98.6bps, HY $95.58, 10Y 1.97%, Gold 1639, EUR 1.3200, AAPL 609.5
Immediate Reaction
10Y +3bps, Gold -$10, ES -1pt, EUR -15pips, AAPL -$0.5