The Federal Reserve leaves rates in the 1.00%-1.25% range

  • Fed to begin unwind of $4.5 trillion balance sheet in October, as expected
  • Virtually all economists expected Fed to leave rates unchanged at 1.00%-1.25%
  • Dot plot continues to forecast one more hike in 2017, three more in 2018
  • Says hurricanes unlikely to affect medium-term path of economy

Highlights from the statement:

  • Inflation to rise temporarily in the aftermath of the hurricanes
  • Inflation to remain somewhat below 2% in near term but tot stabilize around 2% over medium term
  • Business spending has picked up in recent quarters
  • Repeats that near-term risks to the economy appear 'roughly balanced'
  • Unanimous vote
  • Little change on inflation communication

Here is the redline, via ZeroHedge.