FOMC Statement: Inflation Determines Timing of First Move — We Will Likely Be Waiting a Long, Long Time

The market focus was initially on the statement swapping into “can be patient” from “considerable time”. Post the Yellen press conference; markets increasingly focused on no rise in rates before the April 30 / May 1 meeting. Reading through the statement and listening to Yellen’s Q&A the market should be focused on the timing of inflation rather than a set schedule from the Fed — and the Fed’s concern about low inflation has risen. From our perspective, inflation is going to stay low for a very very long time, the result from foreign and domestic activity. As such, so too will the funds rates – maybe September for the first move, maybe even later.
Source: Markets