Highlights of the October 29, 2014 Federal Reserve FOMC statement

  • Underutilization of labor resources gradually diminishing
  • Sees ‘solid job gains’ with lower employment
  • Highlight accommodative policy to be appropriate for ‘considerable time’ following end of QE
  • Repeats that measures of inflation have declined somewhat, says longer term inflation expectations stable
  • Risks to jobs market and economy ‘nearly balanced’
  • Fed funds held at 0-0.25%, where they’ve been since Dec 2008
  • Kocherlakota dissents, prefers continued QE

Reminder: There are is no press conference and there will be no forecasts along with today’s meeting.

Massive 80-90 pip move higher in the US dollar right across the board on the headlines.

Here was the USD/JPY move in real-time:


Goldman Sachs (and others) react to the FOMC decision

EURUSD fall after the FOMC calls jobs gains “solid” with outlook showing “substantial improvement”

Full text of the FOMC statement

Forex Technical Trading: USDJPY steps higher after the FOMC