The FOMC meeting ended with no serious action.  The only change was an alteration/toughening of language indicating the Fed was poised to act and provide accommodation, as opposed to being ‘prepared to take action.’  A small distinction, but an important one.  While markets were clearly disappointed in a lack of action (as they were with similar lack of easing by the European and U.K. central banks this week), there are two issues to consider:  either the economy is not weak enough to warrant additional action (or the data remains inconclusive at this point), or the tools the Fed is considering (‘unconventional’ stimulus) are not viewed as being quite as effective going forward. Read more