“Information received since the Federal Open Market Committee met in May suggests that economic activity has been expanding at a moderate pace,” the U.S. Federal Reserve announced on Wednesday. The sentiment began a statement released after the conclusion of a two-day policy meeting, at which policy was left unchanged, as expected by most economists.
The markets may have not been expecting anything different, but the reaction was still visceral. Equities have grown addicted to accomodative monetary policy and QE. Everybody knows that the ride will have to end eventually, and Chairman Ben Bernanke has begun making noises indicating that the time will be soon.
So where do the Fed board members think we’re heading? Here are Fed projections and highlights from the post-meeting press conference.