- FOMC cut the policy rate by 25 bps as expected.
- The policy statement revealed the vote in favour of the policy was 8 to 2.
- US Dollar Index edged higher ahead of FOMC Chairman Powell's presser.
Following its 2-day meeting, the Federal Open Market Committee (FOMC) on Wednesday announced that it lowered the benchmark interest rate by 25 basis points to the target range of 1.75% - 2% 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 outlook in a press conference at 18:30 GMT.
With the initial reaction, the US Dollar Index edged higher and was last up 0.07% on the day at 97.75.
Key takeaways from the policy statement (via Reuters)
"Vote in favour of the policy was 8 to 2, George and Rosengren wanted no change in rates."
"Will continue to monitor incoming information while assessing the appropriate path for the federal funds rate target range."
"Interest on excess reserves rate set at 1.55%, spread from the top of fed funds range maintained at 20 bp."
"Business fixed investment and exports remain weak."
"Labor market is strong, economic growth rising at a moderate rate."
"Job gains have been solid, unemployment has remained low."
"Household spending has been rising at a strong pace; inflation still running below."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.