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Dollar Falls as FOMC Keeps Interest Rates Unchanged
['Rich Asplund', 'July', 'Min Read']
Yahoo Finance
The dollar tumbled on Wednesday after the FOMC kept interest rates unchanged.
The jump in crude prices raises inflation expectations and could prompt the Fed to tighten monetary policy, a supportive factor for the dollar.
The FOMC, as expected, kept the fed funds target range unchanged at 3.50% to 3.75% in a 9-3 vote, with Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan voting for a quarter-point rate hike.
The IRGC also claimed to have hit and halted three tankers attempting to transit through the Strait of Hormuz.
The markets are discounting a 59% probability of a +25 bp rate hike at the next FOMC meeting on September 15-16.