It is no secret that a significant focus had been placed on whether the "patience" language was going to be removed from the FOMC statement. Yet, as noted in last Wednesday morning’s pre-FOMC commentary, even as the Fed removed the allegedly critical patience from its statement, it respected recent weakness of U.S. and global economic data in substituting something which was just as dovish.
North American equity markets are feeling pretty healthy this morning as they are edging higher on the day so far, but the U.S. dollar isn’t feeling the same sort of love. If the market continues to believe that the Fed will not do anything to rock the boat over the next few months, there could be a lot more room to run for equities.
Equities are faced with a bad news/good news scenario in 2015. The bad news is that the Fed will no longer support the market with endless QE; the good news is that the actual fundamentals are looking better than at any point in this long, strange recovery.