so THAT's why they're throwing a party

I was wondering why we had such a bullish reaction to the Fed news. Now I get it.

The old statement said:
"The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information. "

The new statement said:
"Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information."

The bullish spin is that the last statement referred to the possibility of "additional firming," while the new statement referred to possible "adjustments" -- meaning a move could be a cut instead of a hike. Frankly, I think people who are making a big deal out of this have too much time on their hands, given the other hawkish language. But that explains the market reaction.

Incidentally, my call on the yield curve dis-inverting seems to be right on target, though I expected the cause would be a liquidity drain from the carry trade unwinding. Instead, the cause today is a bond market interpretation that the Fed is primed and ready to cut short-term rates. So does that count as being "right" or "wrong?" You got me!