Changes to the Fed Statement

The FOMC left rates unchanged for a fifth straight meeting but said the economy is "somewhat firmer".

Changes: "...Substantial cooling in the housing market" at the last meeting became "some tentative signs of stabilization."

Language from the last meeting about inflation moderating due to "reduced impetus from energy prices, contained inflation expectations, and the cumulative effects of monetary policy actions"...was removed. I would think that means they believe that inflation has moderated already. One could take that as hawkish in that they aren't looking for any more moderation of inflation.

Everything else is the same as the last statement.

It seems that they have a more positive view of the economy and are still more worried about inflation than growth. We still think the Fed is on hold for at least the first half of the year and maybe for much longer.