The Central Bank will continue to reduce its possession of Treasury effects, agency debt and effects by mortgage-covered effects.
According to the FED, the risks for achieving its employment and inflation goals were approximately in balance. As usual, the committee emphasized that it was “strongly committed to supporting maximum employment and the return of inflation to the objective of 2 percent.”
US Dollar Index went higher as traders responded to the decision of the interest rate. Currently, US Dollar Index is trying to settle above the level of 108.10.
Gold withdrew below the level of $ 2750 when traders concentrated on stronger dollars and rising treasury yields.
SP500 fell to the level of 6020 after the release of the FED decision. Traders are afraid that Fed might be more raced than before.
Traders must note that the Fed Chair Powell press conference, which will start soon, can have a significant impact on market dynamics.