Fed tapers it’s asset purchases by USD 10bn – USD 5bn Treasuries and USD 5bn MBS – meaning asset purchases have been reduced to USD 75bn per month (USD 40bn Treasuries and USD 35bn MBS)
No change to the core forward guidance thresholds, but clear that the Fed will not be pressured into action when unemployment hits 6.5% saying:
“The Committee now anticipates, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate well past the time that the unemployment rate declines below 6-1/2 percent, especially if projected inflation continues to run below the Committee's 2 percent longer-run goal. “
On inflation the committee is clearly sensitive to lower inflation saying it “recognizes that inflation persistently below its 2 percent objective could pose risks to economic performance, and it is monitoring inflation developments carefully for evidence that inflation will move back toward its objective over the medium term.” This is a change in language from the previous statement which “anticipated” inflation moving back towards its target.
Full Text of statement : {http://www.federalreserve.gov/newsevents/press/monetary/20131218a.htm}