Breaking: Fed leaves rates unchanged, remains committed to using full range of tools

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.

In its policy statement, the Fed reiterated that it remains committed to using its full range of tools to support the economy.

Market reaction

The US Dollar Index showed no immediate reaction to the Fed decision and was last seen gaining 0.37% on a daily basis at 90.52.

Additional takeaways as summarized by Reuters

"Will continue to increase bond purchases by at least $80 billion per month of treasuries and $40 billion per month of mortgage-back-statement until substantial further progress made on maximum employment and price stability goals."

"Will maintain 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%."

"Prepared to adjust policy stance as appropriate if risks emerge that could impede the attainment of goals."

"The pace of economic activity and employment has moderated in recent months."

"Weakness concentrated in sectors most adversely affected by the pandemic."

"Weaker demand, earlier declines in oil prices holding down consumer inflation."

"Will no longer offer regularly-scheduled one-month term repo operations after February 9."

"The path of the economy will depend significantly on the course of the virus, including progress on vaccinations."

"Public health crisis continues to weigh on economic activity, poses considerable risks to the outlook."

"Vote in favor of policy was unanimous."