The Fed basically said inflation was still an issue. Of course, the Fed has been saying that for the last three months but the market has had a wonderful sense of denial going on. So, the Fed clarified again: "No, really, inflation is a big issue for us right now. In fact, we might actually raise rates if the situation gets any worse."
Actually, the Fed was a tough more formal:
Participants agreed that risks around the expected and desired path of a gradual decline in core inflation remained mainly to the upside; some noted that upside risks to inflation appeared to have increased slightly in recent months.
I think the markets finally got the message
