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Unanimous Fed Remains "Patient" On Target To Normalize Rates, Expects Lower Inflation - Full Statement Redline

With all eyes firmly focused on the words "patient" on rate hikes, "considerable" period of lower rates, and "transitory" oil-driven deflation, The FOMC did not disappoint

  • *FED REPEATS IT CAN BE PATIENT IN STARTING TO RAISE RATES
  • *FED SAYS ECONOMY HAS BEEN  `EXPANDING AT A SOLID PACE'
  • *FED CITES `STRONG JOB GAINS' AND LOWER UNEMPLOYMENT RATE
  • *FED SAYS INFLATION EXPECTED TO DECLINE FURTHER IN NEAR TERM

So shrugging off the global tumult, The Fed appears set to raise rates no matter what to remove themselves from the corner they are stuck in, wary of what they can do when the next 'event' hits home.

Pre-FOMC: S&P Futs 2024.50, Gold $1286, 10Y 1.778%, EURUSD 1.1339, Dec15 ED 99.285. Full redline below.

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Liquidity disappeared into the statement

As you can see - eMini liquidity is at its lowest levels for this time since at least 2010

pic.twitter.com/x5KiLPaiwn

— Eric Scott Hunsader (@nanexllc)

 

Since The Fed ended QE3, Bonds are up almost 14%, stocks flat, and precious metals up 9-11% (oil down 42%)

 

And since The Dec 2014 FOMC, Silver is up 15% with bonds, gold, and USD up around 7%

 

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In light of today's statement, we thought the following would be interesting...

What The Fed said in the past about The Dollar strength...

h/t @JohnAuthers

And Unemployment...

h/t @enlundm

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And the full statement redline: