So the feds speak and where does that lead?
In all likelihood right where I called it to be... sideways for the short term.
I do not see a whole lot of movement, good or bad, for the next several days as the feds are going to watch to hedge against inflation by increasing rates too fast.
That's very good news for everyone as even as rates rise (and they are 100% going to) so don't get lulled into thinking this current "fantasy world" of low fixed rates are here forever as they most definitely will NOT be.
The FOMC released their statement regarding the current state of the economy and their policy decision on short term interest rates. In December’s statement the FOMC said it “expects inflation to rise gradually toward 2 percent as the labor market improves further and the transitory effects of lower energy prices and other factors dissipate". The Fed faces a difficult decision in attempting to raise rates in an environment with no inflation growth, stagnant wage growth, a declining labor force participation rate, falling energy prices and global economic declines. If the Fed raises rates too soon, without inflation/wage growth, they risk sending the economy into deflation. On the other hand, the ECB’s QE decision may give the Fed more confidence in the outlook for the global economy. To get a proxy for when the Fed views as the right time for raising rates we watch for changes to the “patient” clause: “Based on its current assessment, the Committee judges that it can be patient in beginning to normalize the stance of monetary policy”.