As expected, FED held the rate as it is for now.
However, they left a strong signal that they will raise the rate once more in November. FED also mentioned that interest rate will be stay at the current level longer than previously expected.
More than 2 months with strong crude oil prices have changed a lot of things around the world. Inflations are raising again this time, with strong signals of recessions together. Chinese economies are still struggling, and higher oil prices are one of the reasons.
US FED know this and suggest the solution with strong control of monetary policy. No one knows this is the right decision or not, but FED mentioned this as the solution for now.
US stock market was downed again.
DJ Index was downed 0.2% but S&P 500 Index was downed much bigger with 0.9% NASDAQ Index was collapsing with 1.5% down.
FED sent clear signal to the market today. Inflation is raising again, and US economy is showing some weakness recently. FED might feel something have to done now. Understandable decision.
Apple was downed by 2.0%, Amazon was downed by 1.7%, MS was downed by 2.4% and Tesla was downed by 1.5% today.
We need more time how the market digests this change. Let’s wait and see for a while.
US dollar Index was up 0.1%, ending at 105.21 points today. Dollar Index was downed whole day but after FED announcement, recovered quickly.
As we have known by now, FED’s decisions are mostly in the line of expectations. No surprise this time. Japanese Yen was downed 0.1%, Pound was downed by 0.3% against US Dollar.