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USD/JPY softer after Fed fails to deliver hawkish hold
The FOMC statement did not surprise many as the Fed kept rates on hold as they assess how tighter financial and credit conditions weigh on the economy. The Fed did not rule out a rate increase in the coming months , but swap contracts showed traders weren’t convinced. The Fed tried to deliver a hawkish hold but Wall Street is not believing additional tightening will happen this cycle. The odds for a quarter-point rate rise by the end of January fell from 41% to 29%. Key quote: “Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation.” ... (full story)