In light of increasing economic slack here and abroad, the Committee expects that inflation will remain subdued. Moreover, the Committee sees some risk that inflation could persist for a time below rates that best foster economic growth and price stability in the longer term.
The prices of energy and other commodities have risen of late. However, substantial resource slack is likely to dampen cost pressures, and the Committee expects that inflation will remain subdued for some time.
The economy and policy paragraphs were pretty much identical to April. The FOMC removed deflation as a concern noting commodity prices have risen but still expect inflation to remain subdued.
For now it looks like they are just going to wait and see how things play out and then react. The risk, in my opinion, is that inflation begins to take off and once it does it’s too late to get it back under control. In fact, that is my forecast.
Not much here for markets and stocks have sold off a bit in the wake.