Fed leaves policy unchanged, lower dot-plot – USD lower

No rate hike in June, as expected. The language remains unchanged.

Market reaction is choppy, but the  dollar is generally weaker.

More:

• The dot plot  looks lower.
• Growth forecasts downgraded
• Job growth picked up
• No dissents – dovish Fed
• Rate hikes depend on  economic progress.

Yellen press conference:

• Improvement achieved, more improvement needed
• Hikes will come when Fed is  more confident.
• More evidence needed before raising the rates – dovish message
• Wage growth remains subdued

The Federal Reserve was expected to leave rates unchanged for now, but this is the first meeting in which  a hike was actually on the table. Apart from the regular statement, we get the dot plot that gives us a forecast about the future path of rates: timing of the first hike and the pace as well as a press conference by Chair Yellen at 18:30 GMT.

See our live video coverage here: