The Federal Reserve left rates unchanged on Wednesday in a 10-2 vote, with two members preferring a quarter-point hike. According to Reuters and FXStreet reports, the policy rate stays at 3.75%-4.00% and the Fed upgraded its description of growth to a "strong pace", while signalling no change until after next week's US midterm elections.
Market reaction
- The dollar index was quoted around 102.3, roughly flat after a brief dip and recovery around the statement.
- EUR/USD was near 1.1134, down about 0.15% in early Asian trade after gaining 0.3% the previous session.
- USD/JPY was around 158.05, up about 0.14%.
- The US 2-year yield was near 4.71%, a couple of basis points lower.
Reuters reported that FedWatch pricing still shows about a 78% chance of a December hike, though bets on 2027 hikes were trimmed after Chair Warsh gave no clear guidance on December. Upcoming US jobs and inflation data are likely to shape that outlook.
Quotes are snapshots from news reports and may have moved. Market commentary only, not a trading recommendation.