No change in the Fed’s policy and a very dovish stance with lower expectations for a rate hike according to the dot plot. The decision not to raise rates was unanimous. Esther George did not dissent, and that is dovish as well. There is no hint of any rate hike in the coming months. This is what it sounds like, when the hawks cry.
The US dollar is lower across the board but never goes too far.
Yellen seems worried about the state of jobs, which gain more emphasis than inflation. Brexit is certainly a factor but Yellen doesn’t dedicate too much time for this The US dollar is a factor and has an impact, but is not a “constraint”. A rate hike is not likely in the next meeting or two.
The Fed was widely expected to leave its policy unchanged: no rate hike in June. The specter of Brexit has always been there and has recently intensified. In addition, the disappointing jobs report cemented the no hike. The question is: is July still on the cards? It would need a rebound in jobs and no Brexit, but also some will from the Fed. And to the latter, we might get some answers:
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