This afternoon’s Federal Reserve Open Market Committee (FOMC) statement showed no change in U.S. interest rates or monetary policy, as expected by the marketplace. The Fed said monetary policy will depend on how the pandemic plays out in the coming months. There are still substantial risks to the U.S. economy from the impacts of the pandemic on businesses. The U.S. economy has recovered from its initial hit that took place in the spring, but is still below pre-Covid-19 strength. The Fed will keep interest rates very low until it is confident the U.S. economy is on the road back to full strength.
Fed Chairman Jerome Powell at his press conference said the path forward for the U.S. economy remains very uncertain, adding that some measures of consumer spending have moved down since late June.
Most markets saw little price movement following the FOMC statement and Powell’s remarks. However, gold prices did rally as the U.S. dollar index sold off, post-FOMC.