FOMC Statement Suggests Policy Continuation, USD Stronger

By Lujia Lin,

The following lists the key highlights from the Fed statement released at the conclusion of the Apr. 24-25 FOMC meeting:
  • No change in 0.00%-0.25% fed funds rate target; “exceptionally low rates” until late 2014
  • Economy to “expand moderately,” then “pick up gradually”
  • “Significant downside risks” remain; housing sector still “ depressed
  • Inflation higher, though mainly due to energy prices, longer-term expectations “stable”
  • Maintains current policy of lengthening maturity of assets and reinvesting proceeds from mortgage securities
  • Jeffrey Lacker the lone dissenting vote, disagrees with late 2014 schedule for rate hikes

Market reaction:
  • USD higher versus major counterparts
  • Treasury yields jump; 10-year yield up 3 bps from 1.97 pct to 2.00 pct
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Original Article: http://www.dailyfx.com/forex/market_alert/2012/04/25/FOMC_Statement_Suggests_Policy_Continuation_USD_Stronger.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.