Breaking: Fed leaves policy rate unchanged, reiterates commitment to use full range of tools

Eren Sengezer FXStreet

The Federal Open Market Committee (FOMC) on Wednesday announced that it left the benchmark interest rate, the target range for federal funds, unchanged at 0%-0.25% as widely expected.

Follow our live coverage of the FOMC decision and the market reaction.

Market reaction

With the initial market reaction, the US Dollar Index edged higher and was last seen posting small daily gains at 90.50.

Key takeaways as summarized by Reuters

"Will continue to buy $80 billion a month in Treasuries and $40 billion a month in agency-backed securities until substantial further progress has been made on maximum employment and price stability goals."

"Committed to using the full range of tools to support the economy."

"Expecting to maintain the accommodative policy until inflation runs moderately above 2% for some time, so that inflation averages 2% over time and longer-term inflation expectations remain well-anchored at 2%."

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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