FOMC tapers, but continues to eye soft inflation data

|By:, SA News Editor

There's little surprise as the Fed continues to taper its asset purchases and says future moves will be data dependent.

As for ZIRP, the FOMC expects it will remain in place "well past the time" when the headline UE rate falls below 6.5%, "especially if projected inflation continues to run below the Committee's 2 percent longer-run goal." Eurodollar futures are pricing in about 100 basis points of tightening between now and December 2015.

The vote in favor of today's action was unanimous.

Equities slip to session lows in wake of the news, the Dow (DIA -1%), S&P 500 (SPY -0.8%), and Nasdaq 100 (QQQ -0.9%), and Treasury yields continue five basis points lower on the session, the 10-year at 2.71%. TLT +0.4%.