Following its 2-day meeting, the Federal Open Market Committee announced that it kept the benchmark interest rate unchanged at the target range of 2.25% – 2.5% in a widely expected decision. Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is scheduled to deliver his comments on the monetary policy in a press conference at 16:30 GMT.
Key highlights from the official statement (via Reuters)
“Fed cuts Interest on excess reserves rate to 2.35% from 2.40% to keep fed funds rate well within target range.”
“Information received since March indicates economic activity has risen at a solid rate.”
“Overall and core inflation have declined on a 12-month basis; removes reference to low inflation being due to energy prices.”
“Job gains have been solid; growth of household spending and business fixed investment have slowed.”
“Repeats will be patient as it determines what future adjustments to rates might be appropriate.”
“Fed vote in favor of policy was unanimous.”
About the FOMC statement
Following the Fed’s rate decision, the FOMC releases its statement regarding monetary policy. The statement may influence the volatility of USD and determine a short-term positive or negative trend. A hawkish view is considered as positive, or bullish for the USD, whereas a dovish view is considered as negative, or bearish.
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