FOMC Statement and Market Reactions

FOMC decided to keep rate unchanged, in line with expectation. It is some highlights from the Bloomberg:

• "Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased"
• "The Committee expects inflation to moderate later this year and next year"
• "However, in light of the continued increases in the prices of energy and some other commodities and the elevated state of some indicators of inflation expectations, uncertainty about the inflation outlook remains high."
• Dallas Fed President Richard Fisher dissented from today's decision, preferring an increase. He dissented against the rate cut at the April meeting.

Some analysts see this statement relatively balanced. I still think the dollar buyers could outnumber the sellers from now regarding the increased possibility of raising interest rate. There are also some supportive data in the short term; GDP is to be released tomorrow which is expected to be revised higher. At the same time the economic weakness in some other countries such as New Zealand and Britain could be more pronounced from upcoming data.

(The Blogger was inaccessible at the time and this post has been added later)