A divided FOMC passes on rates, lowers long term inflation expectations – equity markets post a relief rally
Chair Yellen provides guidance, supported by “Dot Plots” – putting forth a thesis compelling investors to expect a move in December (59% probability), barring a significant economic slowdown or global instability
As expected, political operatives suggest Yellen’s lack of a move is fueled by political objectives
For the first time since December of 2014 and in a highly unusual development, three voting members of the FOMC dissented – led by Boston Fed. President Rosengren
Also as expected, US equity markets reverse higher on the FOMC news
US 10-year yield drops 3.81% to close at 1.63%
Volatility Index drops 16.46% to close at 13.20
WTI Crude (NYMEX): $45.76/bbl
Gold COMEX): 1,336.60/t oz
US 10-year yield: 1.65%
Volatility Index (VIX): 13.20
My post FOMC non-move analysis on what it will take to keep the market at these lofty levels and why for the time being, traders are playing with house money. At this stage of the cycle, there are inherent risks associated with that mindset http://glblmkt.com/the-feds-non-move-lets-the-bulls-back-in
