Here is a sampling of reactions from economists, traders and analysts

From Reuters and elsewhere:

Omer Esiner, chief market analyst, Commonwealth FX:

"The statement was mildly more dovish than expected. The Fed's assessment of the inflation backdrop amounted to a very modest downgrade of the overall inflation situation and could signal slightly more concern on the part of the Fed with respect to their forecast for inflation.
"In the past, the Fed had said that inflation has declined 'somewhat.' I think they took that 'somewhat' word out. That, I think, is a signal that it's a slightly more cautious tone.
"Outside of that, the language of that we got on balance sheet reduction was probably the clearest yet that a likely beginning of that process is going to take place in September.
"Overall, this statement was not too dramatically changed from the previous statements, but that modest, kind of downgrade, of the inflation situation is likely what is sending the dollar and Treasury yields sharply lower."

Markus Schomer, Chief Economist, Pinebridge Investments:

"This is one of the most boring statements for awhile. They need to rethink about these intra-press conference meetings which are meaningless now. On the rate hike front, we know nothing more with inflation running below 2 percent. They still expect inflation would go back to the medium term, which is not different from what they have been saying. It doesn't mean they will stop raising rates because of that. They are still a bit away from their expected neutral rate which is between 1.75 percent to 2.25 percent. On the balance sheet, we had assumed it would start October, but it doesn't matter whether it's September, October or November. What will matter going forward is growth the GDP report on Friday and other data like retail sales. Inflation which I forecast to be about 1.6 percent at the end of 2017 will be stuck here for awhile."

Ward McCarthy, Chief Financial Economist, Managing Director Fixed Income, Jefferies
"We interpret this change in (balance sheet) guidance as an indication that the FOMC could make an official announcement to begin balance sheet normalization as soon as September. However, the descriptor 'relatively' gives policymakers some wiggle room in the event that the labor market and/or inflation data -or possibly a debt ceiling crisis-gives the FOMC cold feet in September."
"The tone of the policy statement is similar to recent prior policy statements, but does put a bit more emphasis on inflation 'running below 2 percent'."
"In sum, the policy statement still points to the continuation of rate and balance sheet normalization but elevated the recent deceleration in inflation from being a difficult-to-understand annoyance to a development that could delay both rate and balance sheet normalization."

Scott Anderson, Chief Economist, Bank of the West:

"They're tipping off to the markets that if the outlook continues to evolve as they expect then September is when they will announce the balance sheet reductions.
"It's a nod to the doves that we're getting concerned with the low inflationary environment, but I don't think it delays the balance sheet reduction. The reason why the markets are reacting the way they are in the wake of the statements is the low possibility of interest rate hikes going forward. December is a low possibility for rate hikes."

Adam Button, chief currency analyst, ForexLive

"The U.S. dollar fell on the FOMC statement for two reasons: The first is that starting the runoff 'relatively soon' isn't the same as 'soon' and leaves open the option of waiting beyond September. The second is that all the talk in the lead-up to the decision was about some kind of hawkish surprise. It's clear the market was positioned that way, it didn't happen, so bets on the dollar cleared out. Expect the dollar to stabilize quickly and for the market to refocus on data."

JJ Kinahan, chief market strategist, TD Ameritrade

"S&P's liked it a bit, bonds have no idea what to think for it and the dollar didn't really care for it would be the way to sum it up best. They didn't change too much - they gave a little bit of a forewarning on the job market, the way they said it started to moderate, I would say taper.
"They are voicing a little bit of concern that if the job market sort of stays steady, inflation pressure is nonexistent if the energy market doesn't supply it, that they are going to be caught in a little bit of a difficult situation going forward. You see it from fed funds telling us we have about a 50/50 chance for a December rate hike. They are, I don't want to use the word trapped because the market has kind of bailed them out with one event or another, but they are in a tough spot here for the rest of 2017. Even that last hike looks like it might be a difficult one to make.
"They changed their wording (on inflation) last meeting to 'around 2 percent' from '2 percent,' that certainly gives them some wiggle room. The fact of the matter is there has been zero cooperation from the energy market and that is usually the greatest source of inflation. The other thing they were saying is if the job market is tapering that lightens wage pressure too."

Joe Colleran, head trader, Bank Leumi

"This hasn't changed anybody's opinion. The clear bellwether for a rate hike is inflation. They seemed comfortable with the last announcement on growth. This will give people reason to bring equities higher. For the bond market, it will be on inflation watch every month. With balance sheet normalization, I think 100 percent they want to make the announcement in September. A December rate hike is a very high probability unless inflation continues to soften and they think it's the wrong thing to do."

Mohamed El-Erian, Chief Economic Adviser at Allianz

"This purposely milquetoast statement by the Fed is in line with market expectations. It speaks to a steady-as-it-goes approach to monetary policy notwithstanding the unusual fluidity in the underlying economic and political context."
On Inflation: "Markets expected that given the decline in inflation readings. Markets will interpret the statement as reinforcing the notion of a slow and gradual 'beautiful normalization' of monetary policy; this after years of heavy reliance on unconventional monetary policy."

Aaron Kohli, interest rate strategist, BMO Capital Markets:
"They were very balanced. If you rank the outcomes that they could have hoped for this is probably the best one. They didn't give the market any new information really to trade. They acknowledged inflation weakness, which was the dovish part of the statement, and they also kept a fairly tight leash on the market by basically implying that they are ready to taper relatively soon. It strikes that good balance between sounding certain about a very likely September taper and acknowledging that some of the risks are there as well, specifically to inflation."