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FOMC decided 10-0 to hold ongoing interest rates at 2.0% and Markets react well PDF Print E-mail
FXstreet.com (Barcelona) - Despite the latest development and market expectations, Fed decided to leave unchanged its Fund Rate for fourth consecutive time since last cut on April 30, according to the lates Fed's Statement published today.

FOMC deciced to hold the ongoing interest rates at 2.00% despite the fact that 25 bps cut was expected.
It could be seen the Fed slightly on a hawkish side againstinflation. Nothing was new. FOMC has shown again that
both the downside risks and the high inflationary pressure are significant concern.

Right after the release, the USD/JPY jumped upwards the 106.00 level and US stocks went higher.

Fed offered no signals that rate cuts are forthcoming soon, also, oficials continued to warn about inflations risks that it may be intensified in the wake collapse of Lehman Brothers.

Posted originally: 9/16/2008 8:15:00 PM

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