Prior to the bank's announcement, it was announced that USA retail sales would continue to rise during the month of August. However, the pace of growth was much lower than economists 'estimates.
In Europe, the broad FTSEurofirst 300 index dropped 0.40% to 1,440.42. The report said the NAHB/Wells Fargo Housing Market Index rose to a reading of 83 in September from a reading of 78 in August. Meanwhile, a report released by the Commerce Department showed that USA business inventories rose 0.1% in July after falling 1.1% in June.
Afraid of market volatility?
Interest rates will be held near zero for at least three more years as the USA economy struggles to recover the economic ground lost to Covid-19, the Federal Reserve signalled on Wednesday.
They also said they expected the unemployment rate to fall to about 7.6% by the end of the year, lower than previously anticipated.
The Japanese yen eased slightly as investors reacted to the Bank of Japan interest rate decision.
"Effectively what we are saying is that rates will remain highly accommodative until the economy is far along in its recovery", Fed Chair Jerome Powell said in a news conference following the release of the policy statement and new economic projections.Читайте также: Twisted Sister to anti-maskers: Don't use our protest song
"They have a very loose monetary policy right now and we expect that to continue. the Federal Reserve is the stock market's best friend", said Christopher Grisanti, chief equity strategist at MAI Capital Management in Cleveland.
"It will take a while to get back to the levels of economic activity and employment that prevailed at the beginning of this year", Powell told reporters. The Fed was "long on talk and short on action". "With inflation running persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer-term inflation expectations remain well anchored at 2 percent".
The Fed doesn't see core PCE inflation hitting 2% until the end of 2023.
The median GDP forecast among the 17 FOMC members reflect the better-than-expected U.S. recovery, and they now see the economy contracting by only 3.7 percent this year, compared to 6.5 percent drop expected in June.
The Fed will also be releasing its "dot plot" projection of interest rates, which is a chart of dots representing the anonymous, individual rate projections of Fed policymakers for the next few years.
The US central bank reiterated its commitment to use its full range of tools to support the US economy at this hard time. The current decline is temporary, and the general trend is still up, and the factors for the yellow metal's gain are still in place and increasing. On the upside, gold bulls are still fully convinced to move the metal to the historic peak at $2000 again as soon as possible.
Later today, we will receive the Bank of England interest rate decision.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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