Highlights of the July 29, 2014 FOMC decision:
- Odds of persistent sub-2% inflation ‘diminished somewhat’
- Inflation has moved somewhat “closer” to long-run objective; previous statement had said it was “running below” objective
- Removed reference to unemployment rate being elevated
- Repeats that accommodative policy to be appropriate for “considerable time” after asset purchase program
- Fed tapers total pace of QE to $25B from $35B, as expected
- Rates held at 0 to 0.25%, as expected
- Plosser dissents on guidance
Quick take: I don’t think this is enough for the dollar bulls.