The updated FOMC economic projections show a more slightly dovish tilt, with 2014 PCE inflation now expected at 1.3-1.8% vs. 1.4-2% for the June estimate. The 2014 GDP estimate is narrowed and lowered, now at 2.9-3.1% vs. 3.0-3.5% in June. The 2014 unemployment rate is now seen at 6.4-6.8% from 6.5-6.8%.
12 FOMC members see the first hike in the Fed Funds rate as coming in 2015, with 3 seeing it in 2014, and 2 in 2016. This compares to June when 14 saw the first hike coming in 2015, 3 in 2014, 1 this year, and 1 in 2016 (2 less voters this go-round).
The 10-year Treasury yield is now down to 2.75%.
Earlier: Markets rise as no taper announced.
Full FOMC statement.
Bernanke press conference begins at 2:30 ET (webcast).