Dislikedthe last paragraph from new statement...
In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected.
so indeed, this is a dovish statement.Ignored
FOMC Interest Rate Statement 49 replies
FOMC Rate Statement EUR/USD 0 replies
how to get the FOMC statement right away... 8 replies
Home Sales and FOMC Interest Rate statement 85 replies
Dislikedthe last paragraph from new statement...
In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected.
so indeed, this is a dovish statement.Ignored
QuoteDisliked[FOMC STATEMENT CHANGES] There are extensive changes to the FOMC statement. The most important is the disappearance of "The extent and timing of any additional firming that may be needed..." to be replaced by the dead-neutral ""Future policy adjustments will depend on the evolution" of inflation and growth. The overall impression of the rest of the statement is that Fed officials are no longer seeing the desired progress in growth or inflation. This time, "Recent indicators have been mixed and the adjustment in the housing sector is ongoing" replaces reference to somewhat firmer growth and signs of stabilization in housing back in January. Core inflation readings have no longer "improved modestly in recent months..." Now, core inflation readings are 'somewhat elevated," with continued tension between high resource use and likely moderation over time.
QuoteDisliked[THE FOMC "BIAS"] There is some debate today over whether the Fed's "bias" has changed. The ambiguity is over what exactly this short-hand term for the policy outlook means. Those who don"t think the bias has changed seem to have in mind that Fed officials still declare inflation to be their biggest worry. Those who think the bias has changed note what the statement explicitly says about policy. Given that the disagreement is over what "bias" means rather than on the actual policy outlook, fixating on whether the bias is neutral misses the point. The Fed statement now says future policy adjustment depends on developments in inflation and growth, whereas it had said "...additional firming that may be needed...." The statement also stopped noting progress in core inflation. Those are the things on which we should focus, not on whether the "bias" (a word markedly absent from official commentary) is neutral.
DislikedMaybe it's just me, but I'm seeing this move as technical. And the rate statement was the spark and volume provider.Ignored
DislikedThe FOMC was definitely the catalyst but I'm not so sure this move was technical/temporary. I keep getting the feeling that something is going on in the market that I (we) don't know about yet.Ignored
Dislikedok, here is what the dollar weakness is all about, specifically...
in the previous statement, that last paragraph reads...
and here is the last paragraph from new statement...
so you can see, the line "The extent and timing of any additional firming that may be needed" is not in the new one.
so indeed, this is a dovish statement.Ignored
DislikedI think this really is the crucial difference. What they are telling markets is that IF growth should realy turn down-they will react with a rate cut. It's as if they're saying they won't be caught behind the curve, which the markets should find very reassuring. The door to a rate cut has been opened...whether the Fed walks thru it is another story, but there it is.Ignored
DislikedHow is that sentence in any way dovish? I think you'd need to get very abstract to find something dovish in this statement.Ignored
Dislikednot really abstract at all. actaully once i saw it i had to slap myself for not seeing it right away. "The extent and timing of any additional firming that may be needed" has been removed from the statement, and not by mistake.
see this post: http://www.forexfactory.com/showpost...8&postcount=22
and this one: http://www.forexfactory.com/showpost...6&postcount=13Ignored
DislikedHad the USD strengthened instead, people would have found a phrase in the FOMC speech to back it up.Ignored
Dislikedguys, im not expert on fed speak either, and i agree traders tend to look for ways to support the market's direction, but this one is different. the statements for the past two years have had the same line, and now it is gone. this is a clear indication that the tightening bias is gone.Ignored