The Federal Open Market Committee (FOMC or The Fed) meets eight times a year. At the end of these two-day affairs, precisely at 2 p.m. the “Statement” is read, preceded by a one sentence report on whether or not intersest rates (the Fed Funds Rate) is changed.
Unless a surprise happens with the interest rate announcement, traders and analysts look to the language contained in the Fed’s page and a half statement for indications of the august body’s thoughts on the health of the economy, and what they might be doing with monetary policy in the future.
It’s such a popular thing to do, that many financial sites post marked up documents comparing the previous and current statements word-by-word.
I believe it would be useful for us to see why the global markets have traded up since the Fed released their most current statement.