Trader Talk

Fed Statement: Traders Happy (Mostly)

FOMC Statement:stocks unchanged after the statement as traders are happy with (mostly) the status quo.

The one upgrade from the FOMC statement came on the economy: "economic activity is leveling out"  is definitely a bit more positive than "the pace of economic contraction is slowing," which was the statement from the June 24th meeting.

  • Bonds Add to Losses After Fed Signals End to Buying

On quantitative easing, where there was some worry that they might extend the amount of buying or the time period, a little more finality: the full amount will be purchased "by the end of October."

Status quo on the other two issues:

1) Inflation: will remain subdued "for some time"

2) Interest rates: exceptionally low "for an extended period" 



Questions?  Comments?