- A 25 basis point rate cut was fully priced in
- The Fed removes the line “the Committee has gained greater confidence that inflation is moving sustainably toward 2 percent”
- Prior statement repeats that economic activity “has continued to expand at a solid pace”
Before the decision, the market was pricing in a 68% chance of another cut in December and 110 bps through next October. USD/JPY was trading at 153.01 ahead of the decision and 2-year yields at 4.21%.
Fed Chair Jerome Powell will hold a press conference at the bottom of the hour (2:30 pm ET).
This article was written by Adam Button at www.forexlive.com.
