- Fed keeps federal funds target range unchanged at 1.5% – 1.75%.
- Fed sees no change in policy rate next year.
- US Dollar Index edges higher modestly ahead of Chairman Powell’s press conference.
Following its 2-day meeting, the Federal Open Market Committee (FOMC) on Wednesday announced that it left the benchmark interest rate unchanged within the target range of 1.5% – 1.75% as widely expected and noted that the policy rate is seen staying at the current level in 2020. 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 19:30 GMT.
With the initial reaction, the US Dollar Index, which tracks the greenback’s performance against a basket of six major currencies, inched higher from its daily lows and was last down 0.1% on the day at 97.42.
Key takeaways from the statement
“Fed maintains interest on excess reserves rate at 1.55%.”
“Fed judges that current stance of monetary policy is appropriate to maintain US economic expansion and inflation and employment goals.”
“Will continue to monitor incoming data, including global developments and muted inflation pressures.”
“Jobs gains solid, inflation still below target.”
“Fed vote in favor of policy was unanimous.”
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