As we all know, the FED held rates at the FOMC meeting and left the “extended period” phrase in and will maintain QE2 through its duration. Two weeks ago Jon Hilsenrath opined that the FED would likely remove the “extended period” language but that proved another opinion without material support. Many analysts felt that the March 15 FOMC statement was more hawkish than previous statements but I struggle to see how that is in fact the case. Yes, the FED did say the economy is on “firmer footing and overall conditions in the labor market appear to be improving gradually.” There were a few references to inflation but that hardly makes for a hawkish outlook.