The rest of the FOMC statement other than the rate decision was broadly neutral. The economic assessment was mixed, with softer language on the labor market ("the pace of job gains slowed") but firmer language on domestic demand ("household spending and business fixed investment have been increasing at solid rates").
The latter is somewhat surprising in light of disappointing retail sales and durable goods reports for September, but may represent an effort to correct some of the perceived pessimism for which the Fed was criticized heavily in September.
In terms of external risks, the FOMC removed the sentence referring to "recent global economic developments" possibly restraining economic activity and dampening inflation in the near term.
The removal may simply mean that these developments are no longer "recent" and it is not viewed as a meaningful change. Importantly, in the sentence on risks being nearly balanced, the FOMC retained the caveat that they are "monitoring global economic and financial developments."
"The bottom line is that the Fed remains concerned about external influences on the US economy, but is perhaps trying to downplay their importance relative to the September message", says Societe Generale.


RBA Hikes Interest Rate to 4.60% as Inflation Risks Rise
RBA Says ASX Still Falls Short on Governance and Risk Controls
Fed’s Logan Signals 50 Basis Points More in Rate Hikes
Yen Sinks as BOJ Rate Hike Fails to Impress Markets
BOJ Signals Faster Rate Hikes as Inflation Risks Grow 



