Changes:
- Currently: "Economic activity has picked up from modest pace in 1st half of year"
- Previously: econ activity expanding at moderate rate
- Previously: econ activity expanding at moderate rate
- Currently: Jobs gains solid despite little change in unemployment rate
- Previously: Fed noted strong June following week July
- Previously: Fed noted strong June following week July
- Currently: Fed expects labor market CONDITIONS to will strengthen
- Previously: Fed expects labor market INDICATORS to strengthen
- Previously: Fed expects labor market INDICATORS to strengthen
- Currently: Near term risks to outlook = Roughly Balanced
- Previously: near term risks = "have diminished."
- Previously: near term risks = "have diminished."
- Completely new phrase: "The Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives."
The last part is the only really interesting piece of the announcement itself. It begs the question: if we haven't seen enough with the current economic data, what will be enough? Markets can't help but read a bit of extra dovishness into that part of the statement. It's as if the Fed is saying "yes, we see that you think that we should hike rates, but we don't all agree on that yet."
Speaking of all agreeing, 3 voters dissented. That's about as much dissent as we see, and a sign that they they're not merely SAYING that they're getting closer to hiking. This caveat offsets the dovishness of the actual decision to forego a hike.
