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.