No rate hike in June, as expected. The language remains unchanged.
Market reaction is choppy, but the dollar is generally weaker.
More:
- The dot plot looks lower.
- Growth forecasts downgraded
- Job growth picked up
- No dissents – dovish Fed
- Rate hikes depend on economic progress.
Yellen press conference:
- Improvement achieved, more improvement needed
- Hikes will come when Fed is more confident.
- More evidence needed before raising the rates – dovish message
- Wage growth remains subdued
The Federal Reserve was expected to leave rates unchanged for now, but this is the first meeting in which a hike was actually on the table. Apart from the regular statement, we get the dot plot that gives us a forecast about the future path of rates: timing of the first hike and the pace as well as a press conference by Chair Yellen at 18:30 GMT.
See our live video coverage here:
More: The Case For Staying Short EUR/USD Into FOMC – Barclays