In a move that matched consensus estimates, the conclusion of the two-day FOMC Meeting resulted in no changes to US monetary policy. The Federal Reserve opted to leave interest rates on hold at 0.75% without mention of whether there will be a rate considered during the March meeting.
Market gauges of the outlook for interest rates are currently showing a very low likelihood of any action at the upcoming meeting, especially after the Fed concluded during its latest statement that inflation remains low. While the Federal Reserve did sound a more upbeat note on the outlook for inflation, saying it “will” rise to 2.00% over the medium-term, financial markets are now only anticipating two rates hikes during the calendar year instead of the three proposed by the Fed. The nosedive in the dollar kept precious metals propped up, with silver erasing earlier session losses on Wednesday to close mostly flat.