Fed leaves rates unchanged as expected. 3 dissenters, a rarity. However, rate forecasts for the future have been slashed.
The US dollar is falling.
more coming
The Fed was not expected to raise rates in September but the level of uncertainty was higher than usual. Despite the low chances of a hike now, Yellen and co. were projected to leave the door open for a hike in December, after the elections and hopefully with better economic data. Here is the full preview: Dollar depends on the door to December.
The US dollar remained strong ahead of the event, with the exception of the yen: the BOJ recalibrated its policy, yet with few immediate stimulus steps. The greenback could remain the “cleanest shirt in a dirty pile” yet the yen has the potential to surge ahead. EUR/USD has been range trading for a long time and could explode now.
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The lower forecasts for rates in 2017 and 2018 weight.
20:18 Some hawkish tones
The Committee judges that the case for an increase in the federal fund's rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives.
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