Janet Yellen and the FOMC have decided to continue with the low rate policy and tapering of quantitative easing yet again. This may sound similar to March, but this likely will come without the whipsaw reaction from Janet Yellen’s commentary this time around.

The FOMC is tapering bond buying by another $10 billion per month – now down to $45 billion from a peak of $85 billion. They will purchase $20 billion in mortgage backed securities and $25 billion in Treasuries.

One thing that could grab some eyes is the note that the economy has picked up recently after the sharp winter slowdown. That is on top of the pathetic 0.1% GDP gain seen on Wednesday morning. Labor market indicators remain mixed, and the unemployment rate remains elevated.

Household spending was listed as rising more quickly, even as fixed business investing has moved lower. The housing recovery was also pointed as remaining low.

Team Yellen is operating with the expectation that the economy will expand at a moderate pace, and with jobs to improve gradually. Forward guidance is effectively unchanged from the March statement. This vote for action today was 9-0 for Fed Funds.

The quick take – this FOMC meeting result may look as though nothing new came out of it at all.

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