Fed funds rate unchanged at 0.25% as anticipated while the statement is devoid of projections on the length of the crisis or the Fed’s emergency measures, FXStreet’s analyst Joseph Trevisani informs.
Key quotes
“The Fed kept the base rate unchanged at 0.25% while revised economic and rate projections were not released with the statement as had been expected.”
“There was no estimate in the statement about how long the Fed may maintain its emergency programs. There was also no mention of the specific domestic and international measures the bank has taken in the past two months.”
“The economic contraction, job losses and the Fed’s emergency stance will likely keep the dollar’s risk status intact at least until the pandemic recedes and the US recovery is credibly underway.”
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