• Fed funds target unchanged at 3.50-3.75%, as expected
• Vote was unanimous
• Statement says economic activity is expanding at a solid pace despite elevated
  uncertainty that owes, in part, to the conflict in the Middle East
• Productivity growth and capital investment are strong
• Job gains have kept pace with the workforce, and the unemployment rate has changed little
• Inflation remains elevated relative to the Committee’s 2 percent goal,
  in part reflecting supply shocks that have driven price increases in
  certain sectors, including energy
• The Committee will deliver price stability.

The statement was very short compared to recent history.

Nine officials now see a rate hike this year and five see two hikes. Eight project the Fed hold and Miran continues to see a cut but didn’t dissent.

The market is taking this as hawkish and the S&P 500 is quickly down 40 points, or 0.5%. US rates are up across the curve, led by the 2-year note yield up 9 bps to 4.14%.

Ahead of the release, the market was pricing in 21 bps in hikes this year and that’s now up to 34 bps.