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The FED raises rates and goes hawkish with three hikes for 2017 predicted. They also  acknowledge the rise in inflation expectations. The  unanimous decision boosts the dollar. Afterward, Yellen downplays the change in the dot-plot, saying it was only down to a few members. The greenback’s gains are limited. Update: they are renewed  after the initial retreat.

As the dust settles, the US dollar gradually gains more ground but  seems to hesitate. It is worth noting a small upgrade in growth prospects for 2017, up to 2.1%. In addition, the long-term interest rate has been upgraded to 3%. Yellen repeated the “data-dependent stance”. All in all, a hike is a hike, but one may question the level of hawkishness  seen in the dot-plot.

See the live blog for a detailed write-up of the event.

More detailed reactions:

The Federal Reserve was  widely expected to raise rates at the one-year anniversary to  the historic post-crisis rate hike. The big question was: what’s in store for 2017, with  two rate hikes  seen by both markets and the previous dot-plot. This is an important  FOMC featuring the statement, forecasts (including the dot-plot) and also the press conference by Janet Yellen. Full preview: Three scenarios, only one is USD positive.

Markets were quite tense ahead of the  big moment, with the dollar sliding just a bit.

Live Blog – as it happened

Live Coverage – as it happened