Fed Dishes Out Continuity

The Fed's steady-as-she-goes approach, while expected, also is reassuring to markets.
Straight ahead.                                                                                                      

The outcome of today's Federal Reserve meeting was largely as expected, with the world's most powerful central bank maintaining a steady-as-she-goes policy approach and, in the process, sidestepping yesterday's market excitement following the higher-than-expected monthly inflation report. And markets, both bonds and equities, loved the policy continuity. But the institution's calm demeanor and consistent signaling conceal some challenging policy judgments that will likely impose themselves in the months to come.

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