Published: Jul 26, 2023, 18:07 UTC•1min read
The Fed remains committed to returning inflation to its 2% target.
- Federal Reserve raised the federal funds rate to 525 bps – 550 bps.
- FOMC statement contained no surprises.
- U.S. dollar moved lower as traders bet that Powell’s comments could be less hawkish than previously expected.
On July 26, Federal Reserve issued FOMC statement and indicated that it decided to raise the federal funds rate to 525 bps – 550 bps, in line with the analyst consensus.
The Fed reiterated that U.S. banking system remained sound and noted that tighter credit conditions would weigh on economic activity, hiring, and inflation. The Fed remains strongly committed to returning inflation to its 2% target.
U.S. Dollar Index pulled back after the release of the Fed decision. There were no surprises in FOMC statement, so traders will wait for Powell’s comments.
Gold continued to trade near the $1970 level. Traders will have to wait for additional catalysts.
SP500 made an attempt to rebound from session lows. It is not clear whether this rebound will be sustainable as Powell’s comments may be hawkish.
For a look at all of today’s economic events, check out our economic calendar.
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