The following lists the key highlights from the Fed statement released at the conclusion of the Apr. 24-25 FOMC meeting:

  • No change in 0.00%-0.25% fed funds rate target; “exceptionally low rates” until late 2014
  • Economy to “expand moderately,” then “pick up gradually”
  • “Significant downside risks” remain; housing sector still “depressed”
  • Inflation higher, though mainly due to energy prices, longer-term expectations “stable”
  • Maintains current policy of lengthening maturity of assets and reinvesting proceeds from mortgage securities
  • Jeffrey Lacker the lone dissenting vote, disagrees with late 2014 schedule for rate hikes

Market reaction:

  • USD higher versus major counterparts
  • Treasury yields jump; 10-year yield up 3 bps from 1.97 pct to 2.00 pct