Implode-o-Meter News - Fed Says Risks Have Diminished, Yet Leaves Rate Unchanged

"Near-term risks to the economic outlook have diminished," the Federal Open Market Committee said in its statement Wednesday after a two-day meeting in Washington, before repeating language from June that the panel "continues to closely monitor" inflation and global developments. Job gains were "strong" in June and indicators "point to some increase in labor utilization in recent months," the Fed said.
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"It's kind of an upbeat statement, although guarded," said Roberto Perli, partner at Cornerstone Macro LLC in Washington and former associate director for monetary affairs at the Fed Board. "It's a sign of a little bit of confidence, if you want, in the outlook going forward."
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Data since the Fed's June meeting indicate "that the labor market strengthened and that economic activity has been expanding at a moderate rate," the Fed said. The statement contained three references to recent improvement in the labor market.

The market seems to be wondering why the Fed didn't hike if the data is looking so good... the read might be that this is confirmation that, "yes, the Fed is constrained by the dollar"...

Relevant:

Fed Says Risks Have Diminished, Yet Leaves Rate Unchanged