The Federal Reserve on Wednesday with Chair Jerome Powell announced no charge in rates. Markets had priced in negligible odds of a rate hike. With no press conference, the next hike is expected in June.
The Federal Reserve meets on Wednesday for the last time with Janet Yellen as chair before Jerome Powell takes charge, Markets have priced in negligible odds of rate hike next week. The Fed appears irrelevant in the current stock mania.
The US dollar had been rallying ahead of Janet Yellen’s speech on financial stability at Jackson Hole, 100 pips in USDJPY and EURUSD. Her speech brought nothing new or dramatic and the dollar sold off immediately.
On Tuesday the Federal Reserve’s FOMC begins a two day meeting. On Wednesday at 2:00 p.m. ET there will a FOMC statement issued. The Fed is not expected to change interest rates but investors will be looking for more detail on its balance sheet and for further and inflation.