Yet another huge bounce of 78c for the currency...
plus this re the sharp fall in the DOW.
Market Update 2:30PM: The Fed left the federal funds rate unchanged at 1.0%, yet changed the wording of the directive to no longer say "considerable period of time"... Additionally, "probability of an unwelcome fall in inflation has diminished in recent months and now appears almost equal to that of a rise in inflation"... The bond market has taken the policy dirrective as reflecting a change in the bias slant of the committee towards a possibly sooner tightening than had been previously anticipated by the market... Accordingly, the bond market got slammed after the release of the announcement, with the long-term rates especially hard-hit... The pullback in bond yields has created valuation concerns in the stock market, which has also slipped noticeably lower....
Below please find the complete statement:"The Committee continues to believe that an accommodative stance of monetary policy, coupled with robust underlying growth in productivity, is providing important ongoing support to economic activity. The evidence accumulated over the intermeeting period confirms that output is expanding briskly. Although new hiring remains subdued, other indicators suggest an improvement in the labor market. Increases in core consumer prices are muted and expected to remain low. The Committee perceives that the upside and downside risks to the attainment of sustainable growth for the next few quarters are roughly equal. The probability of an unwelcome fall in inflation has diminished in recent months and now appears almost equal to that of a rise in inflation. With inflation quite low and resource use slack, the Committee believes that it can be patient in removing its policy accommodation. "NYSE Adv/Dec 1751/1509, Nasdaq Adv/Dec...
