Fed meeting: Interest rates unchanged at November meeting

Following its 2-day meeting, the Federal Reserve decided to keep its policy rate unchanged at its current target range of 1.00% - 1.25%. With no press conference scheduled for today, the FOMC released its monetary policy statement, with key headlines, via Reuters, found below.

Balance sheet process initiated in October is proceeding.

Economic activity has been rising at a "solid rate" despite the impact of hurricanes; labor market continues to strengthen.

Core inflation remains soft even though gasoline price rise after hurricanes boosted overall inflation in September.

Key notes

US: Who will lead the Fed? - Rabobank.

In view of analysts at Rabobank, who will lead the Fed is a far more important driving factor for the markets than today’s interest rate decision.

Today's upbeat data help boost the case for a December Fed rate hike - ING.

"Strong manufacturing orders, production, and employment help boost the case for a December Fed rate hike," notes James Knightley, Chief international Economist at ING.

About the FOMC statement 

Following the Fed's rate decision, the FOMC releases its statement regarding monetary policy. The statement may influence the volatility of USD and determine a short-term positive or negative trend. A hawkish view is considered as positive, or bullish for the USD, whereas a dovish view is considered as negative, or bearish.