Reviewing the Fed Statement

The Federal Open Market Committee (FOMC) statement and subsequent economic projections released by the Fed yesterday were generally in line with what I had been expecting. I did think the Fed would reveal that rate hikes were unlikely until 2014 and, while I was mildly surprised to see that explicitly stated in the release (we thought it would be apparent from the forward projections), the point remains the same. The Fed does not see growth picking up enough to warrant rate hikes for a long time.

Commentators seemed mixed as to whether this release was more hawkish or more dovish than market expectations. I think those that are calling the release hawkish are grasping at straws. You can safely ignore the fact that three Fed officials wanted to see rate hikes much sooner. We know who those three are: Jeffery Lacker (Richmond), Charles Plosser (Philadelphia) and Richard Fisher (Dallas). They have been dissenting and/or publicly arguing for tighter money for some time now. Regardless of whether they are right or not, they are clearly in the minority, and only Lacker is a current voter on the FOMC....678 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.