Highlights of the October 28, 2015 FOMC interest rate decision:

  • The line that warned global developments may restrain growth was removed
  • US economy 'has been expanding at a moderate pace'
  • Lacker dissents
  • Fed sees sold gains in household spending, business investment
  • Labor market slack has diminished since early this year
  • Says risks nearly balanced, monitoring global developments
  • Pace of jobs gains slowed, jobless rate steady but underutilization of labor resources have diminished
  • Household spending, business fixed investment increasing at solid rates, housing sector improved further, net exports soft
  • Inflation continues to run below objective partly reflecting declines in energy prices and prices of non-energy imports
  • Market based measures of inflation have moved slightly lower

This line was put in last month and removed this month: "Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term."

This is more hawkish than the market was expecting and the US dollar is surging.

The market wanted a signal that a December hike was off the table but it's been the contrary with the Fed signaling it's a definite possibility.