As expected, Federal Reserve officials pledged to keep the target interest rate between 0% and 0.25%. They also said that economic growth is “well below” pre-pandemic levels, despite picking up in some areas.
As well as keeping interest rates on hold, they reiterated their commitment to maintaining bond purchases and the array of lending and liquidity programs designed to support the economy during the virus.
The dollar was weak yesterday in the build up to the Federal Reserve’s press conference, following their latest meeting. It has edged slightly higher this morning, but still remains near two-year lows against some currencies due to the Fed’s ‘dovish’ stance.
Today, we’ll see US GDP data, which is expected to show a drop quarter-on-quarter. This could also have an impact on the dollar.
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