The Federal Open Market Committee (FOMC) maintained interest rates at 2-2.25% as anticipated. In its policy statement it noted that economic activity continues to rise at a strong rate. The only change in the statement from the last meeting was that the growth of business fixed investment has moderated. It also notes that the unemployment rate is still declining.
There is nothing at all surprising here and there are no hints about the number of future rate hikes. Although the market knew this was coming we are seeing some movement in the indices as the computer algorithms are fired on the headlines. The computers are playing their usual games and it is a mistake to believe that the movement is meaningful.
Unfortunately, after the big gain yesterday the indices are tilted toward a 'sell the news' reaction but the initial dip was bought and there looks to be some effort to keep squeezing the indices higher.
Bonds are up slightly, the dollar is stronger and gold is down. There isn't any significant news in this Fed decision but it is a good excuse for some movement.