FEDERAL RESERVE FOMC MEETING – TALKING POINTS:
- The Fed announced its decision to leave its policy interest rate range unchanged at 2.25-2.50 percent as expected
- US inflation continues to fall while consumer spending and business fixed investment slowed
- Looking to sharpen your stock market knowledge and skills as a trader? Check out this educational guide on How to Trade Market News
- Download the free DailyFX Q2 USD Forecast Here and our Equity Forecast Here for comprehensive fundamental and technical outlook on the US Dollar and major global stock indices over the second quarter
The Federal Reserve just released its latest monetary policy update which announced the central bank’s decision to remain on the sidelines and leave its target interest rate range unchanged at 2.25-2.50 percent. The verdict comes as expected according to overnight indexed swap pricing seeing that markets were pricing only a 2.2 percent chance that the Fed would move on rates today.
OIS FED FUTURES RATE CHANGE PROBABILITY FOR MAY 2019 FOMC MEETING PRICE CHART: DAILY TIME FRAME (AUGUST 01, 2018 TO MAY 01, 2019)
The updated press statement highlighted that “economic activity rose at a solid rate” over the intermittent period. This compares to language from the Fed’s March meeting press release which stated “economic activity slowed from its solid rate in the fourth quarter.” The Federal Reserve also noted further declines in inflation while growth in household spending and business fixed investment slowed as well.
Unsurprisingly, the FOMC reiterated its intent to remain patient as it observes incoming data and economic developments in determining what future adjustments it will make to the target federal funds rate. Labor market conditions, inflation indicators, in addition to readings on financial and international developments were underscored as areas that the Fed will continue to monitor closely.
DOW JONES INDEX PRICE CHART: 1-MINUTE TIME FRAME (MAY 01, 2019 INTRADAY)
The Dow Jones began to tick higher immediately following the FOMC press release.
DXY US DOLLAR INDEX PRICE CHART: 5-MINUTE TIME FRAME (MAY 01, 2019 INTRADAY)
On the other hand, the DXY US Dollar Index slid further into negative territory on the day.
Markets are currently listening to Fed Chair Jerome Powell speak at the podium as he provides follow-up commentary on the FOMC’s latest position.
Please check back shortly for the full market alert.
Whether you are a new or experienced trader, DailyFX has multiple resources available to help you: an indicator for monitoring trader sentiment; quarterly trading forecasts; analytical and educational webinars held daily; trading guides to help you improve trading performance, and even one for those who are new to FX trading.
– Written by Rich Dvorak, Junior Analyst for DailyFX
– Follow @RichDvorakFX on Twitter