The Fed recognized that growth is slow, and that inflation remains subdued.

I include a chart of the real median household income to demonstrate why the recovery is so wobbly.  Demand and investment are weak because people have less money to spend.  Wow, what a surprise.

The Fed attributes this uncertainty to ‘global economic and financial developments continue to pose risks.’  And they have not only scaled back their inflation expectations, they have also scaled back forecasted GDP growth, which I think is still a bit optimistic.

If one looks at their ‘dot plot’ they are indicating a less frequent raising of rates this year, perhaps only two occasions rather than three.

I have included the Fed’s data sheet below the text that shows the difference between what they had forecasted in December and what they have changed that to now.

The US dollar dropped and gold took off higher like a scalded cat. Stocks remain mixed.

Janet Yellen will be giving a press conference shortly.