The Fed made clear that the rate hike was a tentative beginning to a "gradual" tightening cycle, and that in deciding its next move it would put a premium on monitoring inflation, which remains mired below target.
"In light of the current shortfall of inflation from 2 percent, the Committee will carefully monitor actual and expected progress toward its inflation goal. The Committee expects that economic conditions will evolve in a manner that
will warrant only gradual increases in the federal funds rate," the Fed said.
New economic projections from Fed policymakers were largely unchanged from September, with unemployment anticipated to fall to 4.7 percent next year and economic growth at 2.4 percent.
The statement and its promise of a gradual path represents a compromise between those who have been ready to raise rates for months and those who feel the economy is still at risk.
"The Fed is going out of its way to assure markets that, by embarking on a “gradual” path, this will not be your traditional interest rate cycle," said Mohamed El-Erian, Chief Economic Advisor at Allianz.
The dollar firmed modestly after the rate rise. Based on interest rate futures markets, traders expected a second hike in April.
The median projected target interest rate for 2016 remained 1.375 percent, implying four quarter-point rate hikes next year.
To edge that rate from its current near-zero level to between 0.25 percent and 0.50 percent, the Fed said it would set the interest it pays banks on excess reserves at 0.50 percent, and said it would offer up to $2 trillion in reverse repurchase agreements, an aggressive figure that shows its resolve to pull rates higher.
http://finance.yahoo.com/news/fed-readies-first-hike-almost-135151591.html?l=1How cute, these clowns think the economy is looking better...lets skip over the fact that much of their official numbers are cooked beyond recognition...and instead lets believe in nothing but hopium, unicorns, fairies...
WTF, the casino's are running with it...
http://finviz.com/...it must be real!!!
If I hadn't already pulled out, I would have some short plays set to go. But they rob people blind both directions, so...