FOMC leaves interest rate unchanged in September as expected

The US central bank announced on Wednesday that it left the policy rate, federal funds rate, unchanged at the range of 5.25%-5.5% following the September policy meeting. This decision came in line with the market expectation.

The Federal Reserve was widely expected to leave its policy rate unchanged at 5.25%-5.5%. The Fed will publish the revised Summary of Economic Projections, known as the dot plot.

The US Dollar valuation could be impacted by the revised dot plot and FOMC Chairman Jerome Powell’s comments.

Federal Reserve has declared data-dependent policy in recent months. Giving Fed Chair Jerome Powell and his colleagues more credit, the bank is slowing down its tightening campaign but has yet to declare victory on inflation, and for good reasons. This is why a hawkish tone is likely this time, favoring the dollar.