- The FOMC stayed on hold as expected, but the "dots" showed a sizable downsizing in expectations for future rate hikes. The policy statement showed no hint of any interest in hiking rates in July. Six Fed members expect just one rate hike in 2016 - that's up from a few weeks ago, when just one saw only a single move this year.
- 2017 and 2018 Fed Funds rate projections were cut as well.
- As for GDP, the seers see growth of 2% this year vs. 2.2% expected weeks ago. 2017 is cut to 2% from 2.1%. 2018 remains at 2%.
- PCE inflation this year is expected to be 1.4% vs. just 1.2% at last projection. 2017 remains at 1.9%, and 2018 at 2%.
- The 10-year Treasury yield is lower by 3.8 basis points to 1.576%, but the big move is in 2-year yields, which are off a full six basis points to 0.67%.
- There's partying in the Fed Funds pits, where traders now have priced in just a 50% chance of a rate hike anytime this year.
- TLT +0.45%, TBT -0.9%
- Previously: Fed stays on hold, sees fewer future rate hikes (June 15)
- ETFs: TBT, TLT, TMV, TBF, EDV, TMF, TTT, ZROZ, VGLT, TLH, SBND, UBT, DLBS, TLO, LBND, VUSTX, TYBS, DLBL