So no new grand QE, but an extension of Twist.
Gold had a muted response so far, twist not enough, but no crushing disappointment.
I sense the FED need to point to more control of inflation / clear deflationary risk.
So August for the next guessing games, or events dear boy, events?
Gold's "triangle" is coming to an end anticipating a strong break, up or down?
The changes are unsurprisingly dove-ish, and although they don’t outright signal further easing (QE3) at a later meeting, they certainly lean in that direction.1) The key new sentence is this: “The Committee is prepared to take further action as appropriate to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.”2) The Committee now anticipates that unemployment will fall “only slowly” rather than “gradually”.3) Inflation has declined since the last meeting, before which it had “picked up”.