The Federal Reserve left the interest rate unchanged at a range of 1.25% to 1.50%. This was no surprise and nobody dissented. The view on inflation was slightly more optimistic about it returning to the elusive 2% target. And the comment about raising rates had the word “furtherâ€. These very subtle changes may have boosted the greenback in a very subdued reaction. The NFP is next and it will probably trigger more volatility.Â
Here is the live coverage, as it happened:
The Federal Reserve makes its first decision for 2018 which will be the last one for outgoing Fed Chair Janet Yellen. No rate hike is expected in this meeting which does not consist of a press conference nor new forecasts. The FOMC does not like to rock the boat, but markets can always overreact to any subtle change in the statement. The dollar has been making attempts to recover. Can it continue on this path?
The big event is in March when Powell will make his inaugural decision and will also hold a press conference. The statement of this January meeting is still important: updates views about growth and inflation after we have received the latest figures will be eyed. This is also the first decision with the new voting composition of the Fed. Two members dissented in December and voted against raising rates
