After months of anticipation and speculation the Federal Reserve made the decision Thursday to keep interest rates at zero. This decision itself was not a surprise to the markets. What was surprising was the Fed's post-meeting statement and Chairwoman Janet Yellen's press conference that emphasized the Fed expects rates to stay lower for longer.
The Fed's decision to keep rates unchanged primarily revolved around recent global economic stress related to the Chinese economic downturn as well as inflation running well below the Fed's goal of 2%.
We will be posting our thoughts and analysis early next week.