Fed Update Overview $SPY

· Fed Update – the Fed statement today was very much inline w/the prior release and w/expectations; if there was any deviation vs. plan, the language was a touch more dovish than anticipated. The labor market outlook was upgraded slightly (the Fed is now saying that the labor market is stabilizing vs. prior "deterioration is abating”). However, the Fed still spent a lot of time discussing eco headwinds – “Household spending…remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit….investment in nonresidential structures is declining, housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls”. Commentary around rates and asset purchases was unchanged; the “extended period” phrase was reiterated. Hoenig dissented again over the statement language (not the policy decision).