The Federal Reserve’s projections reiterate the message of low rates while growth is forecast to return to pre-pandemic levels only by the end of 2021. The cautious message may boost the dollar and weigh on sensitive stocks. Focus shifts to Congress, where there is fresh hope for a deal, FXStreet’s analyst Yohay Elam reports. Key quotes “Read my dot-plot, no new rate hikes – that is the message from the Fed. The new projections are pointing to low chances of higher borrowing costs in 2023, certainly not beforehand. That is merely a repeat of the previous messages by the Fed, as published in June.” “The new growth projections show a shallower contraction in 2020 – 3.7% against -6.5% last time – but also a softer bounce in 2021, 4% instead of 5%. Overall, a return to 2019 output levels are due only by the end of next year – a Nike-swoosh recovery. The Fed remains concerned about downside risks coming from coronavirus.” “Yet for markets, it is a disappointment. Stocks have already been climbing down the high trees they hit in late August and they remain sensitive. The US dollar has also managed to halt its fall. This decision may extend the greenback’s recovery and equities descent.” With the Fed refraining from rocking the boat, the focus shifts to elected officials. After a long deadlock, there is new hope for a new fiscal relief package. With the Fed out of the way – and unhelpful to markets – the next rally depends on lawmakers. Without progress there, stocks could fall and the safe-haven dollar could rise.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/JPY refreshes multi-week lows, around 104.75 post- BoJ’s Kuroda FX Street 2 years The Federal Reserve's projections reiterate the message of low rates while growth is forecast to return to pre-pandemic levels only by the end of 2021. The cautious message may boost the dollar and weigh on sensitive stocks. Focus shifts to Congress, where there is fresh hope for a deal, FXStreet’s analyst Yohay Elam reports. Key quotes “Read my dot-plot, no new rate hikes – that is the message from the Fed. The new projections are pointing to low chances of higher borrowing costs in 2023, certainly not beforehand. That is merely a repeat of the previous messages by the Fed,… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.