WHAT HAPPENED: Fed stayed the course. Nothing happened to change expectations of first interest rate hikes happening early next year, and Fed officials announced another $10 billion taper. They also lowered 2014 GDP growth expectations from their March projection of 2.8 – 3 percent range to a 2.1 to 2.3 percent range. FOMC statement:  Fed projection: 

UNEMPLOYMENT FOMC adjusted its 2014 unemployment projection to 6 – 6.1 percent, a tick down from their March projection of 6.1 percent to 6.3 percent. Next year, they expect unemployment to be at 5.4 to 5.7 percent, and in 2016 between 5.1 percent and 5.5 percent.

KEY QUOTE: “A portion of the decline we’ve seen in the unemployment rate probably reflects a kind of shadow unemployment or discouragement,” Yellen said during her presser. “Committee participants generally see the unemployment rate declining to its longer-run normal level by the end of 2016.”

QUICK Q:Is 5.5 percent unemployment a new “normal level” for America’s economy?

QUICK A: Former President Clinton economic adviser ROBERT SHAPIRO, told OVERNIGHT FINANCE: “The new normal may involve lower growth and smaller productivity gains, which would also mean higher unemployment even when times are good.”

NEW NORMAL: 5 PERCENT UNEMPLOYMENT. “The Fed doesn’t believe the unemployment rate can fall below 5 percent in this cycle which, unforgettably, began with a financial collapse,” Shapiro said. “The cycles that follow those kinds of events usually involve slower growth, and thus higher unemployment.”

BLAME BOOMERS? Shapiro said: “The retirement of millions of baby boomers now and in coming years reduces the overall growth of the workforce, and since growth depends on increases in the workforce and increases in productivity, the boomers’ retirements may also slow growth.”

RT NYT economics reporter @Neil_Irwin: “The Wait ‘Til Next Year economy MT @BCAppelbaum: The US economy has basically become the Chicago Cubs.”  (It has been 105 years since the US baseball team, the Chicago Cubs, won the World Series).