"The FOMC statement was not as hawkish as many anticipated"

... Thats from Adam, who was having a break while Ryan took the ForexLive reins over the FOMC

Adam goes on:

  • The Fed has a dual mandate of full employment and low, stable inflation
  • Yellen is increasingly comfortable on the first part
  • That means that even with two solid but not spectacular non-farm payrolls reports before the next FOMC in September, that jobs portion of the mandate could be satisfactory.

The problem is on the inflation side ...

  • Over the past two weeks, breakeven rates have been tumbling, signaling less confidence from the market that the Fed will bring inflation back to 2%

There is more here from Adam: The other omission from the Fed statement

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From Ryan:

  • Fed gives a jobs clue that a rate rise is getting closer
  • Full FOMC statement from the July 2015 monetary policy meeting
  • July 2015 US FOMC meeting: Rate to rise after further job market gains

And, more:

  • RBS says "some" is a lower hurdle
  • RBC says Fed hints it is one-step closer to lift off hike
  • Responses to the FOMC: Deutsche Bank says 'reinforces' view of Sep. lift off
  • Reactions to the FOMC statement - Citi says Fed nearly "good to go"