Instant View: Fed revamps rates guidance, trims bond buys further

Reuters

The Federal Reserve on Wednesday dropped the U.S. unemployment rate as its definitive yardstick for gauging the economy's strength, and made clear it would rely on a wide range of measures in deciding when to raise interest rates.

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COMMENTS:

WAYNE KAUFMAN, CHIEF MARKET ANALYST, ROCKWELL SECURITIES, NEW YORK

So far this is just what the market wanted-the Fed staying accommodative. It doesn't look like too much has changed, although dropping the 6.5 percent unemployment rate might be a key issue. Yields are jumping up right now, which might be a sign that people think Yellen will tighten sooner rather than later, or that inflation could come into the market if the Fed keeps rates low well past 6.5 percent.

MARKET REACTION:

STOCKS: U.S. stock indexes edge lower BONDS: U.S. bond prices add to losses, yields rise FOREX: Euro extends losses versus U.S. dollar

(Americas Economics and Markets Desk; +1-646 223-6300) nL2N0MG1DJ