FOMC Keeps "Considerable" Wealth Effect Dream Alive, More See First Hike In 2015; Two Dissent - Full Statement Comparison

Perhaps not surprisingly - following Hilsenrath's 'leak' - the FOMC has decided to keep the "considerable time" language alive-and-well in its latest statement, supporting the uber-dovishness rate guidance as QE is tapered as expected:

  • *FED TO END QE PROGRAM AT NEXT MEETING IF OUTLOOK HOLDS, RELEASES EXIT STRATEGY GUIDELINES
  • *FED WILL USE IOER RATE TO MOVE FED FUNDS INTO TARGET RANGE
  • *FED TO USE OVERNIGHT-REVERSE REPO `AS NEEDED' IN EXIT
  • *FIRST RATE RISE SEEN IN 2015 BY 14 FED OFFICIALS VS 12 IN JUNE
  • *FED KEEPS 'CONSIDERABLE TIME' PLEDGE FOR LOW RATES POST-QE
  • *FED SEES MEDIAN FED FUNDS RATE AT 1.375% AT END OF 2015
  • *FED SAYS TIMING OF REINVESTMENT PHASE-OUT IS ECONOMY-DEPENDENT
  • *FED SAYS INFLATION `RUNNING BELOW' FOMC'S LONG-RUN GOAL
  • *FED REPEATS SIGNIFICANT UNDERUTILIZATION IN LABOR MARKETS
  • *FED SAYS ECONOMY EXPANDING AT MODERATE PACE, LABOR MKT IMPROVED
  • *FISHER, PLOSSER DISSENT ON FOMC VOTE ON FORWARD GUIDANCE

Record high stocks, record low corp yields, surging GDP, PMIs soaring, housing and consumer sentiment exuberant, jobless claims at lows, JOLTS at highs, and the Apple iPhone 6 - if that doesn't draw Yellen to the middle, we don't know what will... but we are sure she'll explain in the press conference. Full redline below...

Pre-FOMC: S&P Futs 1992.00, 10Y 2.56%, Gold $1235, WTI $94.20, USDJPY 107.50