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MNI: Fed Holds Rates Steady But Points To Likely Future Hikes

FED
  • (MNI) WASHINGTON - The Federal Reserve kept interest rates on hold Wednesday for the first time since March of last year as it tries to gauge the full effect of its aggressive hiking campaign on the economy and credit conditions, but officials suggested more rises to come as they boosted their forecasts for where borrowing costs will peak.
  • FOMC members raised their projections for where the federal funds rate will end the cycle to a median 5.6% from 5.1% at the March meeting, implying at least two more quarter-point hikes may be forthcoming this year.
  • "Holding the target range steady at this meeting allows the committee to assess additional information and its implications for monetary policy," the FOMC said after leaving official rates in a target range of 5%-5.25%, the highest level in 15 years.
  • Sharp move higher for the greenback on the hawkish dot plot, erasing a solid portion of the day’s declines. USDJPY prints 139.99, still well shy of the 140.31 highs from Tuesday.

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