The Fed raises rates, leaves dot plot at 3 hikes. While more members see 3 hikes in 2017, there is no change in the median for 2017 and 2018. The well-balanced statement is probably below market expectations
The dollar falls on a “buy the rumor, sell the fact” reaction.
In the press conference, Yellen clarifies that the Fed made no changes to the outlook. Raising rates now basically does not mean an accelerated pace or higher rates in the longer term. This pushes the dollar even lower.
Follow the live updates via the live blog and the live coverage:
Fed March Hike Live Blog – as it happened
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The Federal Reserve made it clear that it is about to raise interest rates in March. The bigger question is: what’s next? (See the full Fed preview) The dot-lot, new forecasts, the FOMC statement and the press conference by Fed Chair Janet Yellen are set to direct the next direction of the US dollar.
Live Video Coverage – As it happened
Valeria Bednarik, Mauricio Carrillo and I cover it live in the video below:Get the 5 most predictable currency pairs