Commentary from Richard Clarida, PIMCO's global strategic advisor
Fed statement said:
- Labor market strengthened
- Economic activity has been expanding at a moderate rate.
- Acknowledged "Near-term risks to the economic outlook have diminished"
- Offered no guidance
- So for now, the Yellen Fed has given up on "calendar guidance" but is unwilling - or unable - to replace it with outcome-based guidance, or really any guidance whatsoever. This is a Fed that prizes "optionality" above all else.
That pretty much sums it up.