FOMC meeting: main points
Here are the most important points of the Federal Reserve’s July statement:
- The FOMC members have voted unanimously to keep the Fed Funds rate unchanged (0.0-0.25%).
- The Fed expects inflation to rise to 2.0% in the medium term, but wants to be confident in inflation.
- The situation at the labor market kept improving. US economy has been moderately expanding in the recent months.
- Business investment and net exports are the weak areas.
- The Fed will raise rate after some further improvement at the labor market.
The initial reaction of the market players was to sell the US dollar, as the Fed didn’t hint on a date when it planned to start raising interest rates. Then, however, American currency has recovered: most economists didn’t expect much of new info from the Fed.