BREAKING: Fed leaves interest rates unchanged as expected; EURUSD gains 📃

07:00 PM BST, United States - Fed Interest Rate Decision for December:

• actual 4.50%; forecast 4.50%; previous 4.50%;

07:00 PM BST, United States - Interest Rate Projection - 1st Yr (Q2):

• actual 3.6%; previous 3.4%;

07:00 PM BST, United States - Interest Rate Projection - 2nd Yr (Q2):

• actual 3.4%; previous 3.1%;

07:00 PM BST, United States - Interest Rate Projection - Current (Q2):

• actual 3.9%; previous 3.9%;

07:00 PM BST, United States - Interest Rate Projection - Longer (Q2):

• actual 3.0%; previous 3.0%;

The FOMC kept the fed-funds target at 4.25 – 4.50% for a fourth straight meeting, a decision the futures market had already fully priced in. The statement changed little: policymakers still see “solid” growth, a “low” unemployment rate, and inflation that is “somewhat elevated.” They reiterated that balance-sheet runoff will continue and that any future moves will depend on incoming data and the balance of risks. Markets were calm going in and the first reaction kept that tone.

The new Summary of Economic Projections leaves the broad macro outlook intact and still shows a median expectation for two quarter-point cuts in 2025, implying an end-2025 funds rate a half-percentage point below today’s level. Officials project real GDP growth a touch above the March SEP, a jobless rate that edges toward the mid-4 percent area, and headline and core PCE inflation easing into the high-2s next year.

Source: xStation 5