FOMC Says Little News

The last FOMC meeting of the year produced a statement that reads very much like the Nov statement. It recognizes that although the economic data has improved it has not been sufficient to lower the unemployment rate. Contrary to some speculation prior to the meeting, it did not change its $600 bln Treasury purchase figure. There is little new or very interesting in the Fed's statement.

The market reaction has been similarly muted. The dollar initially was sold but quickly bounced back. Bonds remain pinned near session lows and the equity market is firm near session high.

There is one important event left this year and that is the EU Summit later this week.