The Federal Reserve left fed funds rate at 0-0.25% and bond-buying at a $120 billion monthly pace. The central bank already pledged to reduce bond purchases only when it sees "substantial further progress" in the economic recovery and inflation averaging above its target of 2 percent.
Officials stressed that indicators of economic activity and employment have continued to strengthen and that sectors most adversely affected by the pandemic have shown improvement but have not fully recovered and risks to the economic outlook remain. Regarding tapering, the central bank offered some hints that asset purchases could start being reduced soon. Officials said the economy has made progress toward employment and inflation goals, and that the Committee will continue to assess progress in coming meetings. Now we look forward to Jerome Powell's press conference, which is scheduled to begin at 7:30 pm BST. Investors will pay attention to the Chair Fed comment on inflation. However, after his last speech to Congress, no major changes are expected.
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EURUSD fell after FED decision is testing lower limit of the wedge formation.Source:xStation5
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