The quantitative easing (QE) that was started in September 2012 will continue at $75 billion a month, instead of $85 billion.
Much like the federal budget forged by GOP's Paul Ryan and Dem Senator Patty Murray, which does nothing of actually reducing deficit but only reducing the rate of deficit increase.
After the initial plunge on the FOMC announcement, the US stock market swung the other direction and ended the day at all-time high (Dow, S&P500):
As yet another sign of great "recovery", the mortgage application plunged to the 13-year low (from Zero Hedge):
Bullish for the stock market!
The Bernanke Fed said:
Reflecting cumulative progress and an improved outlook for the job market...
Cumulative progress of 0.1% taking from 99.9%, and an improved outlook for the job market expressed by the lower unemployment rate, because they stop counting people whose unemployment benefit has run out even though they are still looking for jobs.
The unemployment rate is set to dramatically fall next year, as the Ryan-Murray budget deal is making sure of it by cutting the extended unemployment benefit beyond 26 weeks.
Bullish for the stock market! Just keep buying the risk assets, as almost all bearish investors have thrown in the towel. Even people like Hugh Hendry, who is effectively saying, "Nothing matters but trends."
Japanese yen has turned even lower against US dollar, at 104 yen per dollar. Hello more carry trade.
Nikkei futures (in yen) to 15,895, more than 300 points higher than Wednesday's (Japan time) cash close (15,587):
Economically ignorant Prime Minister Abe (just like his US counterpart) will exclaim, "See, my Abenomics is working!"