The dollar surrenders its gains after the Fed

The dollar just gave up its gains after the Fed decision.

The US dollar index is little changed for the day at 99.62 as of 2:52 p.m. ET.

It reached as high as 100.01 earlier on Wednesday.

The dollar’s reversal follows the Federal Open Market Committee’s Wednesday decision to keep monetary policy on hold.

The FOMC noted that while inflation has increased in recent quarters, it is still below the committee’s 2% goal.

“Market-based measures of inflation compensation remain low; most survey-based measures of longer-term inflation expectations are little changed, on balance,” they wrote.

Most Fed watchers expected this outcome, arguing that the committee would be keen to see more details from the Trump administration’s proposed fiscal policies before making a move.

But, notably, in the accompanying press release, the committee pointed to the improving business and consumer sentiments in the aftermath of the US presidential election.

The improvements in these indicators were largely due to firms’ and consumers’ expectations for the economy going forward. And so, some argued ahead of the decision that the FOMC would want to see if those expectations actually translate into increases in spending and hiring before raising rates further.

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