The Federal Reserve left its benchmark rates unchanged at 0,50-0,75%, as expected the day before. In the final statement – President Janet Yellen's press conference was not scheduled today – the American Central Bank notes that inflation "has risen in recent quarters" and will reach around 2% in the medium term.
However, the Fed expects "economic conditions to evolve in such a way as to require only gradual rate hikes", which "are likely to remain, for some time, below the levels expected to prevail in the long term". The Fed reiterates that "the course of rates will depend on the economic outlook" as reflected in the data.
The first reactions of analysts and investors are cautious. The general impression is that the Central Bank has not given any indications on the timing of the next interest rate hike, after the quarter point tightening announced on 14 December last. The reaction was also contained on the currency and bond markets.
