The Fed left the interest rate unchanged as expected but made some dovish comments that markets seized upon. They introduced the word symmetric to the statement, allowing markets to understand that they may tolerate somewhat higher inflation. Moreover, the wording related to the economy was somewhat cautious, describing household spending as moderate and more importantly, omitting the line stating that the outlook has improved.
The US Dollar reacted with a drop that was also related to profit-taking. The moves did not go too far though.
Here is the live coverage with Valeria Bednarik, as it happened:
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