FOMC keeps target for fed funds rate unchanged in 2.25% - 2.5% range as expected
|- Fed leaves the target range for fed funds rate steady at 2.25% - 2.5%.
- Removes the phrase 'patient' from the monetary policy statement.
- Greenback weakens against major rivals ahead of Chairman Powell's speech.
Following its 2-day meeting, the Federal Open Market Committee announced that it kept the benchmark interest rate unchanged at the target range of 2.25% - 2.5% in a widely expected decision. Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is scheduled to deliver his comments on the monetary policy in a press conference at 18:30 GMT.
With the initial reaction, the US Dollar Index, which tracks the dollar's value against a basket of six major currencies, dropped to 97.30 area.
Key highlights from the press release (via Reuters)
"Uncertainties have increased regarding outlook for sustained economic expansion."
"Will act as appropriate to sustain economic expansion with a strong labor market and inflation near target."
Drops from statement previous language that it would be 'patient' on future policy adjustments.
"Vote in favor of policy was 9:1, st. Louis Fed's Bullard dissented because he wanted a rate cut."
"Economic activity is rising at a moderate rate."
"Household spending appears to have picked up but business fixed investment has been soft."
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