USD/JPY bolted to 108.18 after the release while the euro got hammered down to 1.2898
Pickings from the statement sees inflation now running below the FOMC’s longer run objective. Other language remains virtually unchanged but Richard Fisher and Charles Plosser made a stronger push for a reduction in accommodation.
“Voting against the action were Richard W. Fisher and Charles I. Plosser. President Fisher believed that the continued strengthening of the real economy, improved outlook for labor utilization and for general price stability, and continued signs of financial market excess, will likely warrant an earlier reduction in monetary accommodation than is suggested by the Committee’s stated forward guidance. President Plosser objected to the guidance indicating that it likely will be appropriate to maintain the current target range for the federal funds rate for “a considerable time after the asset purchase program ends,” because such language is time dependent and does not reflect the considerable economic progress that has been made toward the Committee’s goals.”
The bigger news from this meeting is the shift of members joining the ranks of those seeing the same path of interest rates. Basically the “dots” have shifted (and I’ll pop them up in a bit).
Despite the language remaining the same the market is is running on the prospect of rate rise. The dovishness is not being read from here on out.
