Fed's december hike still on the table

The main take away from the FOMC statement is that the Committee has not closed the door on a December liftoff and is keeping the possibility of a year-end move very much alive. 

It did so by refocusing its guidance specifically on the next meeting, noting that it will consider a rate increase based on the progress, both realized and expected, towards its dual mandate.

"The Fed's hands with respect to the December liftoff were somewhat tied by the ultra-dovish rate expectations discounted in asset prices. With today's statement, the Committee made a clear attempt to get out of that predicament", says Societe Generale. 

By sending a very subtle hint, it probably hoped to trigger a modest repricing of rates expectations without tightening broader financial conditions. It was aclever move, although its success is yet to be determined. Early market response is mixed: although the dollar has rallied notably, equity markets have shrugged off the modestly hawkish message.