The Fed convening had practically no effect on stock, commodities and currency markets. Since QE stopped and Ben Bernanke left, the Fed’s actions have become boring. Alas, Yellen doesn’t quite have the charisma of her mentor.
Thus, as Wednesday’s outcome of the open market committee showed, unemployment in the States is dropping at a decent rate and this is a signal to put rates up. However, at the same time, inflation growth is slow and way off the 2% target. This factor has slowed the Fed down in the taking of a decision. The regulator will continue to keep an eye on the situation and if any of the macroeconomic statistics change in either direction, they will make changes to their policy.
As such the Federal Reserve’s plans are, as always, a secret to the market. Judging by the lot of it, there won’t be any interest rate hike in September.
The euro/dollar is down but within its fluctuation limits since there was no extraordinary market reaction. The US stock markets fell slightly, but not for long and by the end of the trading session they had returned to growth and won back their losses.
This delay of putting rates up will be good for the price of oil. By what they’re doing, the reserve is hindering a strengthening of the dollar. Any strengthening of the USD will see a fall in oil prices.