Currency Analyst since 2010

FOMC meeting: main moments

-          Fed tapers QE from $35B to $25B.

-          Rates held at 0-0.25%.

-          The odds of persistent inflation below 2% ‘diminished somewhat’.

-          Inflation has moved “closer” to long-run objective.

-          No more reference that the unemployment rate is elevated.

-          Accommodative policy may be appropriate for “considerable time” after asset purchase program ends.

-          Charles Plosser, the hawkish president of the Philadelphia Fed, dissented in a 9 to 1 vote because he thought the intention to keep rates low for a considerable time after the Fed stops buying assets does not reflect “considerable economic progress”.

USD bulls obviously wanted more.


Scroll to top