FOMC leaves rates unchanged, (1.50%-1.75% range) but
As widely expected, the Fed has left rates unchanged between a 1.50%-1.75% range, (the vote was unanimous). The Fed funds futures market was pricing in a 4.5% chance of a hike. There is a minor tweak in the statement where they now see things as symmetric.
There are no hints on a June hike, (however, the odds for a June rate hike are above 90%). The dollar was holding near a four-month high on Wednesday as investors waited for the event and is subsequently falling a little here on the outcome, currently trading at 92.63, between a 92.2230-92.7180 range in the DXY today so far.
Key notes from the statement
- Employment growth has been strong 'on avg,' economy is growing at a moderate rate
- Household spending has moderated from late last year, biz.
- Investment was growing 'strongly'
- Economy warrants further gradual hikes
- Roughly balanced risks to economic outlook
- Sees inflation running near `symmetric' goal in m-term
About Fed's Monetary Policy 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.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
