Fed drops reference to international concern, but maintains "strong" domestic growth w an undershooting inflation.
This leaves door open for June hike, but market firmly believes in December....as most likely next hike..
Market sees no "direct reference" and feels vindicated on reluctant Fed....
Stocks small up, eurusd unchanged and bonds at high of the day..
Big non-event but a confirmation that FOMC in no hurry to move.
My call remains the US will flirt with recession this year - Saxo thinks there is 60% chance, which leads us to OVERWEIGHT 10y and 30 yr bonds..
Buy T-bond 30 years futures @ 162.00 with stop below 160.00 we see test of NEW LOWS in yield driven by weak consumption, low inflation and a global economy slowing down.