The 5 Surprises From The Big FOMC Announcement

A very good roundup of positive and negative surprises from Citi’s Greg Anderson and Steve Englander:

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Surprises on aggressive side:

   1. USD600bn towards upper end of where expectations had shifted
   2. Four references to ‘mandate’ including one to ‘statutory mandate’ suggests that they may be making the case that the law requires them to act as long as they are not hitting targets

Surprises on the not so aggressive side:

   1. USD75bn per month somewhat low relative to expectations
   2. Buying of medium term rather than long-term disappointing to market
   3. ‘regular review’ may be more complicated next year with more hawks voting

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