The FOMC made very small changes to their statement, mostly in the discussion of the data outlook and risks, that arguably are slightly dovish. They made no changes at all to the policy language for asset purchases or forward guidance on rates. Overall, we see the Fed retaining optionality and data dependency into the September meeting. However, given the modestly dovish tone today and the fact that the Fed will need to make sizable cuts to their growth and inflation forecasts in September, we still see a December start to tapering as most likely.
Read the full report here.