Highlights of the FOMC statement released March 16, 2016:
- Fed leaves rates in a band between 0.25% and 0.50%
- Global economic developments continue to pose risks
- Median in dot plot implies two 2016 rate hikes vs four prior
- Economic activity has been expanding at a moderate pace
- Household spending has been increasing at a moderate rate
- Business fixed investment and net exports have been soft
- Inflation to rise to 2 percent over the medium term as the transitory effects of declines in energy and import prices dissipate
- George dissented in favor of a hike
- Statement doesn't include balance of risks for second month
- Market-based measures of inflation remain low vs 'declined further' prior
Dovish stuff, the US dollar is getting beaten up.
The main thing the market is focused on is the tone but comments on business fixed investment changed from "has been increasing at a moderate pace" to saying it's been "soft".
