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The Fed raises rates as expected. They still see strong growth and are happy with the drop in unemployment. However, this time there were two dissenters: Charles Evans joined Neel Kashkari in opposing the hike. But on the most important thing, the dot-plot, the Fed did not change its projections.: 3 hikes in 2018.

The dollar initially dropped but then bounced before exposing its weakness and grinding lower. The greenback was hit earlier by a disappointing inflation report. Core CPI slipped back to 1.7%, not going anywhere fast.

Yellen did not add too much to the statement in her last post-decision press conference. She mentioned that the impact of tax cuts has been taken into account by some members. Wages are low, but they are still expected to rise. The same goes for inflation.

The Federal Reserve is expected to raise the interest rates. This is well telegraphed. Will they change the dot-plot for 2018? Currently, they foresee three hikes next year, just like the three moves this year. However, markets are sceptical about the rate hikes given the weak inflation. Today’s report was especially poor. See the full preview:  Fed decision: a lot depends on the reaction to the inflation data

Join Valeria Bednarik and I for a live blog about everything related to the decision and the reactions in foreign exchange markets.

Live blog – as it happened