FOMC statement highlights:
- Winter slowdown partly reflects 'transitory factors'
- Household spending growth fell, real incomes rose strongly
- Below-goal inflation partly reflects falling import prices
- Energy, import-price effects on inflation to be transitory
- Repeats it wants to be reasonably confident on inflation
- Repeats it sees inflation rising toward 2% in medium term
- Job gains moderated, labor slack little changed
- Business investment softened, exports declined
- No comments on the dollar
Quick take: There's nothing surprisingly dovish here. The Fed is still optimistic, that's good for the dollar.
There is nothing touching on a hike being 'unlikely' at the June meeting, so it's a live meeting but no one is expecting in then; it comes down to the data.
Reminder, there are no forecasts at this meeting and no press conference.
