The meeting of the US Federal Open Market Committee lasted for two days. The result was a decision to maintain the basic interest rate at the level of 1-1.25% per annum.
This decision was not a surprise for analysts and investors as it coincided with the market expectations.
The communiqué based on the results of the FOMC meeting also contains the information on the Fed’s intention to reduce assets in the balance sheet. In addition, it was noted that the labor market continued to strengthen, and the consumer spending and investments in business did not stop to grow.
As for the inflation rate, there were no surprises either. The inflation did not exceed the level of 2%, inflation expectations remain balanced.
The Fed noted that the stimulating direction of the monetary policy had been chosen. And the goal of such a policy was to strengthen the labor market and achieve the inflation rate of 2%.
The Fed added that at the next meetings it would be possible to raise the base interest rate, everything would depend on the market situation.
Unanimity in decision-making (all nine participants voted to keep the rate) as well as justifying the expectations of investors caused the strengthening of the US dollar. The upward trend will continue in the near future.
The material was prepared with the participation of Andrey Majorov,
a leading analyst of the brokerage company CT Trade