A Neutral FOMC Hold

The FOMC, under new Chair Kevin Warsh, maintained rates at 3.50-3.75% while signaling a split in future policy direction. This shift toward a more hawkish tone, combined with the new economic projections, has supported gains in the US Dollar.

Key Takeaways

• 1.The FOMC left the policy rate unchanged at 3.50-3.75%, with the decision being unanimous.
• 2.The new 'dots' plot shows a divided committee, with nine members favoring a hike and nine favoring unchanged or lower rates.
• 3.The US Dollar strengthened following the announcement as market pricing shifted toward favoring potential rate hikes.

Table of Contents

• A ‘neutral’ FOMC hold
• Implications
• Currencies
• Global
• Disclosure appendix
• Disclaimer

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