FOMC keeps benchmark interest rate unchanged at 2.25% - 2.5% range, sees no rate hikes this year

Following its 2-day meeting, the Federal Open Market Committee announced that it left the benchmark interest rate unchanged at the target range of 2% - 2.25% 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. 

Key highlights from the official statement (via Reuters)

• Fed keeps target interest rate unchanged at 2.25-2.50 pct, sees no rate hikes this year, one in 2020.
• Intends balance sheet runoff to slow beginning in May and end in September provided that economy, money market conditions evolve as expected.
• Plans to continue to allow agency debt and mortgage-backed securities to decline in order to hold primarily treasuries in the long run.
• To reduce cap on monthly redemptions from $30 bln to $15 bln beginning in May.
• Plans to reinvest payments on agency and MBS debt into Treasuries starting in October at maximum amount of $20 bln per month.
• Expects MBS reinvestment below the $20 bln maximum will initially occur across 'range' of maturities to roughly match treasury maturity composition.
• Expects limited sales of agency MBS in the longer run but says timing and pace would be communicated well in advance.
• Expects to hold asset portfolio roughly constant for a time with gradual increases in some liabilities offset by declines in reserves.
• Plans to provide more details on market operations in May.
• Expects to increase holdings to keep pace with trend growth of non-reserve liabilities in the longer run.
• Economic growth has slowed from its solid rate in the fourth quarter, job gains solid.
• Sees lower inflation on a 12-month basis largely as a result of lower energy prices.
• Sees slower growth of household investment and business fixed investment in the first quarter.
• Market based inflation measures have remained low; survey based inflation expectations little changed.
• Repeats will be patient as it determines what future adjustments to rates might be appropriate.
• Vote in favor of policy was unanimous.

About the FOMC statement. 

Following the Fed's rate decision, the FOMC releases its statement regarding monetary policy. The statement may influence the volatility of USD and determine a short-term positive or negative trend. A hawkish view is considered as positive, or bullish for the USD, whereas a dovish view is considered as negative, or bearish.

About the FOMC economic projections. 

This report, released by Federal Reserve, includes the FOMC's projection for inflation and economic growth over the next 2 years and, more importantly, a breakdown of individual FOMC member's interest rate forecasts.