Anyone, or rather any vacuum tube algo, hoping that Fed mouthpiece Jon Hilsenrath's traditional post mortem would be kind enough and summarize the FOMC with a simple one or at most two-word phrase ("Buy" or "Superstrong Buy") will be disappointed. At best, the following summary can be summarized as "Neutral", or "Cautiously Non-committal", although as he correctly points out "Modest" is worse than "Moderate" as most recall from elementary school - it is unclear if this news is horrible enough to send the S&P to record highs.
Federal Reserve officials Wednesday kept the central bank's $85 billion-per-month bond-buying program in place and pointed to modest growth, higher mortgage rates and low inflation as factors it is watching closely.
The Fed said that the economy has expanded "at a modest pace," during the first half of the year and also noted that mortgage rates "have risen somewhat."
The description of growth as modest appears to be a slight downgrade from the "moderate" growth Fed officials had been seeing in the economy. It is the first time in at least three years that the Fed has used the term "modest" to describe the economy in its formal policy statement. The Fed's comment about higher mortgage rates is also a new expression of concern in the statement.
The Fed also placed new emphasis on inflation in the statement. "The Committee recognizes that inflation persistently below its 2% objective could pose risks to economic performance, but it anticipates that inflation will move back toward its objective over the medium term."
More notably in the associated video, the Hilsenoracle says "the economy is not playing out the way they've been expecting it to... they point to indicators they are watching that may hold them back [on tapering]."