Confused why the Fed stunned everyone, and is willing to anger the TBAC by soaking up to a whoping 0.4% in 10 Year equivalents from the bond market each week thus crushing bond market liquidity even more? The reason is simple: even further trimming in the Fed's economic forecasts, which now sees 2014 GDP growth of 2.9%-3.1%, well below the 3.0%-3.5% seen in June, driven by yet another reduction in its PCE inflation forecast from 1.4%-2.0% to 1.3-1.8%.
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For those curious what the first forecast of 2016 data shows, here it is: the FF is seen anywhere between 0.5% to just over 4%, with the "longer run" eventually hitting 4%.
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Source: FOMC [5] [5]