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The FOMC: Rates left on hold; dollar falls as Warsh fails to vote for hike
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FXStreet Forex & Commodities News
The Fed kept interest rates on hold today, defying a 30% chance in the Fed Funds Futures market that rates would rise.
The Committee voted 9-3 to keep rates on hold, with governors Kashkari, Hammack and Logan all voting to hike rates due to concerns about inflation.
The immediate market reaction has been a sharp drop in the USD on a broad basis.
These include:· The Federal Reserve is watching the market reaction to monetary policy.
Chart 1: The USD index falls after the Fed rate decisionSource: XTB