The Fed FOMC Statement essentially acted as if it was taking action yesterday with a measured step of buying less bonds in the amount of 10 billion USD. What is particularly interesting per the Fed’s policy statement was its reliance on the labor market statistics and Official Unemployment Rate as a justification for its actions. What Digital Markets Advisor finds troubling is that the Fed seems on the surface to be holding up the Official Unemployment Rate as concrete reasoning for its pronounced mandate, when it seems to us that the ‘real’ unemployment rate still shows a considerable amount of people either underemployed and people who have stopped looking for meaningful employment.

Here is the Fed’s FOMC Statement for those that would like to examine the document: