The key takeaway’s from today’s rate decision and statement:
- The Federal Reserve hiked interest rates to the target range of 1-1.25% as expected
- The FOMC plans to shrink its balance sheet later on this year, with no precise date included
- No significant mention of the recent softness in economic data, although the FED will “monitor inflation developments closely”
- All-in-all, a bit more hawkish than expected, especially after today’s dismal data
EUR/USD pair following the FED-decision
Markets are weighing the announcement in a volatile fashion, but the Dollar is gaining strength after an initial spike higher. Stocks are slightly under pressure, while commodities are trending lower following the decision. Cryptocurrencies recovered slightly from their earlier losses, although the statement should be slightly negative for the segment. We will continue to cover the aftermath of the Fed meeting, as the dust settles!