Perhaps the biggest red flag in today's FOMC release is the quarterly economic projections which improved from March with the Fed expecting better GDP and employment, offset by lower core and PCE inflation from 2013 all the way to 2015: whether this is sufficient for Bernanke to determine a need to taper the monthly $85 billion flow will be explained during the 2:30 pm press conference.
The central fed tendency: i.e., pretty blue charts
Just as notable: 4 of 19 FOMC members saw the first firming take place before 2015.
Finally, looking at the short end, 3 FOMC members saw a 1% Fed Funds rate by the end of next year, with one expecting for a 1.5% print. Still, the bulk of Fed economists are not too worried about the short end of the curve until 2015.
