The FOMC statement was little changed from July. It reiterated that there was “significant” slack in the labor market, despite continued improvement. It repeated that rates would likely remain low for a “considerable” time after the end of QE. It also again indicated that even after the Fed’s employment and price objectives were neared, Fed funds would likely remains below the “normal” long-run level. The Fed’s economic assessment saw minor tweaks recognizing the ongoing improvement of the economy. This is largely in line with our expectations and more dovish than the market expected. However, the quick knee jerk ... (full story)