Fed announces interest rate decision

Fed announces interest rate decision

The US Federal Reserve (Fed) announced its interest rate decision. The Fed left the policy rate unchanged at 0 - 0.25 percent. The bank did not make any revisions in its asset purchase programs. After the pigeon text, the US fell for 10 years, while the dollar index fell below 90.5.

The Fed announced its rate decision after the first Federal Open Market Committee (FOMC) meeting of the year. In line with the expectations, after the meeting where the interest rates were not changed, the policy rate will continue to remain in the range of 0 - 0.25 percent.

There was no change in the monthly bond purchasing program of at least 120 billion dollars. It was stated that bond purchases will continue until a significant change in employment and price stability is observed.

While the US 10-year bond interest declined slightly after the decision in line with the expectations, there was no change in the dollar index, which rose to 90.9 within the day and was just above 90.5 before the decision. USD / TL is horizontal at 7.38.

In the Fed's decision text, which is described as a dove, it was stated that economic recovery and employment remained moderate, while weak demand and low oil prices suppressed inflation.

In the statement made by the Fed, it was stated that the regular repo auctions with a maturity of one month were terminated for the smooth functioning of the money markets, and that high-volume overnight repo operations will continue to be organized.

Fed Chairman Jerome Powell stated that some developments point to a better outlook later this year and stated that they will maintain the supportive stance of monetary policy until employment and inflation targets are achieved.

Pointing out that the economy has a long way to go before reaching its employment and inflation targets, Powell said, "It will probably take some time to achieve significant progress." found the evaluation.