Marking 54-straight meetings without a single interest rate hike, yesterday’s FOMC Statement and interest rate decision were no surprise to most market participants as the Federal Reserve maintained much of the same language on the economy. According to the statement, slack in the labour market has continued to diminish with the economy posting solid job gains as the Fed setting the stage for liftoff when the employment picture improves further. While some have interpreted the language as a sign that the Federal Reserve might opt to push back the timeline for rate hikes, the true sign that the shift in monetary policy might not be coming sooner was the lack of language in relation to the inflationary outlook as energy prices once again drag on CPI and PCE inflation metrics. The dollar was steadier on the announcement, making strides higher against all peers after softening earlier in the week.
Fed Warns on Inflation
Daily Analysis - 30/07/2015