The Fed took out the word 'patient' as almost everyone had expected.
You can see the intraday commentary on this here and here.
With an agency of the Treasury itself saying that they see a heightened risk of a 'quicksilver market' in equities, you can bet that the Fed is going to be treading lightly on their raising of interest rates to satisfy their policy needs.
Their conundrum is how to control the asset bubble which they have caused without crashing the markets, again.
What is most significant is that, especially in light of the Yellen post statement press conference, the Fed is moving back to the pre-crisis guessing game, where they will have much more flexibility to respond to changing circumstances without tying their policy changes to external measures.
This is an acknowledgement that the economy has grown much weaker, and that the Fed finds themselves at a bit of a loss in trying to determine just exactly where we are, and where they need to be.
And with that nod to 'exports' in their statement, they are certainly signaling that they are aware of what Japan and the ECB are doing with regard to their currencies.
Have a pleasant evening.
