FOMC Recap - Rates Remain Unchanged
As expected, the FOMC maintained previous policy and left rates unchanged in the range of 0.00 percent to 0.25 percent, although they did remove the "considerable time" phrase, replacing it with "patient."
Other notable takeaways:
- The FOMC said the "labor market indicators suggests that underutilization of labor resources continues to diminish."
- GDP forecast in the 2.6 percent to 3 percent range
- Chairwoman Janet Yellen said language change does not change Fed's view, and that job growth has been strong. She also felt inflation expectations were likely to be transitory.
Overall, the upbeat tone of the statement seemed to be the focus of traders, as the S&P 500 futures jumped 14 points following the release.
SPDR S&P 500 ETF Trust (NYSE: SPY) popped higher mid-afternoon, and traded recently at $200.70, up 1.4 percent.
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