The Fed is already about as dovish as they can get without hiking interest rates but they are sounding even more market friendly with the latest decision.
There are only two changes in the policy statement:
"Economic activity has slowed from its solid rate in the fourth quarter," which gives the Fed reason to not raise rates, and "Overall inflation has declined, largely as a result of lower energy prices; inflation for items other than food and energy remains near 2 percent," which is another good excuse to not raise rates.
In addition to the policy comments the Fed will stop running off its balance sheet later this year. In addition, 11 members signal there will be no hike this year and four are supportive of one hike in 2019.
This is the sort of Fed action that has driven the market higher for years. It produces much scorn and ridicule among market players that are tired of an artificial and manipulated market, but their job is to trade the market not to judge monetary policy.
The indices spiked higher on the news and we'll see how well the hold up when the Powell press conference starts in a few minutes. If nothing else this will help to put support under the market.
P.S. - Watch gold, I added Agnico Eagle Mines (AEM) .