FOMC Interest Rate Statement

THANKS merlin.

For immediate release The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.

Economic growth has slowed over the course of the year, partly reflecting a substantial cooling of the housing market. Although recent indicators have been mixed, the economy seems likely to expand at a moderate pace on balance over coming quarters.

Readings on core inflation have been elevated, and the high level of resource utilization has the potential to sustain inflation pressures. However, inflation pressures seem likely to moderate over time, reflecting reduced impetus from energy prices, contained inflation expectations, and the cumulative effects of monetary policy actions and other factors restraining aggregate demand.

Nonetheless, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Sandra Pianalto; William Poole; Kevin M. Warsh; and Janet L. Yellen. Voting against was Jeffrey M. Lacker, who preferred an increase of 25 basis points in the federal funds rate target at this meeting.

damn Lacker going against the grain again LOL

News Strike Release the number before news 1min
and FF the same

I blew that one! Lost my earlier gains today.

FOMC:

changed words from "cooling" of housing market to "substantial cooling"



FOMC acknowledges...

USD sell i would say; and it looks like whatever FOMC does in the future, be it a hike, a pause, a cut, USD will get a sell

That was a no trade for me but fading the initial move down would have worked.

whoop whoop yeah I got my 70 cents on the move down

Looking into the FOMC statement, I think USD will sell and GBP/USD will go past 1.97.

Thanks


kapanil

hope everyone did good today!! I just stick with the same method as the earlier release: buy and a sell each with 20pip t/p....

It seems illogical that the USD is weakening. I think it's just traders trying to "get in on the trend" too late. I think the dollar will strengthen in the medium term. EUR/USD might have to touch strong resistance first (like it did on Friday).

why, could I ask?

There's nothing in the statement to indicate a rate cut. One member even voted for an increase.

im still in the same trade as earlier, brought pound at 1.9624 still looking for that 100 pip profit.

retail sales should help the dollar tomorrow

the way I get it as is:

"substantial"

is a strong word, which shows the thinking behind Fed. I think there will be rate increases, not consecutively though, in the future, but it will harm USD anyways. Fed is really worried about the state of the economy, and its path. Well, there is a reality to that. Look at 20%+ retiring baby boomers during the next decade!

I agree that EU countries can NOT bear high rates, either, and they face similar issues. The excess capital however has to go somewhere, be it stocks or commodities, or housing. And i think they are about to flow into commodities

im still in the pound trade....im talking eur/usd

Metals, oil and agriculture futures are all down on the day!:

two issues are housing and autos, and there was an article from bloomberg that suggested home sales may be the bottom as buyers take advantage of low prices, but in the situation right now, I believe that everyone knew the rate was going to stay the same and because of the fact that it did, it wasn't as big of a move relatively. In terms of outlook for next quarter, many believe the fed will cut rates, and that may be the explanation as to why the dollar is down. It's not because of the number today but rather the future outlook for it next quarter. The EUR has just increased rates, if the dollar stayed the same, that alone would be bearish for the dollar.

hehe; didn't say it would happen in 45 minutes