Sentiment Improving But No Hike Yet

The Federal Reserve held the line on interest rates at its meeting this week, though it did give a nod to growing optimism among the business community and consumers.

As widely expected, the Federal Open Market Committee — the central bank’s policy making arm — kept its benchmark overnight lending rate target at a range of 0.5 percent to 0.75 percent. In December, the Fed raised the target a quarter point, or 25 basis points, marking just the second hike in more than 10 years.

There was little in the post-meeting communique to indicate when the Fed might resume the rate normalization process.

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.