The Federal Reserve’s FOMC statement is out, and it’s a shocker!

The Fed is NOT TAPERING its massive $85 billion large-scale asset purchase program.

Almost no one expected this.

The Dow went from -40 to +63 in the blink of an eye. 

The S&P 500 got as high as 1,718, which is an all-time intraday high. With general expectations focused on a Fed taper of $5-$15 billion, traders raced into stocks in the aftermath of the decision.  

The U.S. dollar tanked, and gold spiked, bonds zoomed driving interest rates down. 

The Fed also issued its economic projections.  FOMC participants now expect GDP to come in between 2% and 2.3% this year, down from 2.3% to 2.6% last time, and the unemployment rate to come in at 7.1% to 7.3%, down one-tenth of a percent on both ends of the range.  Three Fed officials expect the first rate hike to come in 2014, 12 expect it in 2015, and two in 2016.  The central forecast for the 2016 rate path is around 1.75% to 2%.

P.M. Kitco Roundup: Gold Shoots Higher As FOMC Does Not Announce “Tapering”- HERE

Here’s the market action as of 11:55 Pacific Time: