BREAKING: Fed holds rates unchanged 🗽US500 loses 0.6%

The US Federal Reserve decided to hold interest rates unchanged in January at 4.5%, in line with expectations.

The Fed statement does not include language that inflation had made progress toward the 2% objective, as it had in the December statement. Investors may see it as the rising 'inflationary risk' approach across the Federal Reserve members. Just after the decision, US500 was losing almost 0.6%.

According to the Fed statement

• Economic activity has continued to expand at a solid pace.
• Unemployment rate has stabilized at low level, labour market conditions remain solid; replacing reference in previous statement to conditions having eased.
• Risks to achieving employment and inflation goals are roughly in balance.
• Balance sheet run-off to continue at previous pace.
• Economic activity has continued to expand at a solid pace.
• Vote in favour of policy was unanimous.
• Fed is attentive to the risks to both sides of its dual mandate.

Source: xStation5