Fed raises rates by 25 bps; third hike of 2017

Following its 2-day meeting, the Federal Open Market Committee announced that it would hike the benchmark interest rate by 25 basis points to the target range of 1.25% - 1.50% in a widely expected decision. Janet Yellen, Chair of the Board of Governors of the Federal Reserve System, is scheduled to deliver her comments on the moentary policy in a press conference at 19:30 GMT. 

Key highlights from the official statement (via Reuters)

Faster growth trajectory, faster decline in jobless rate than in previous projections; no change in inflation projections for 2018 and beyond.

Economic activity and job gains have been solid, says expects job growth to remain strong.

Inflation has declined this year but still expects it to reach 2 percent target over medium term.

Near-term risks to the economy appear roughly balanced.

Fed vote in favor of policy 7 to 2, Evans and Kashkari dissented because they preferred to keep rates unchanged.

Key notes

When is the Fed interest rate decision and how could it affect DXY?

The Federal Reserve will announce its decision at 19:00 GMT. At the same time, updated macroeconomic projections of FOMC officials will be released, including the “dot plot” (interest rate estimations). Janet Yellen will hold a press conference at 19:30 GMT (the last post-meeting press conference from her). 

FOMC Preview: 11 major banks expectation from December meeting.

We are closing into the FOMC’s December policy decision and as the clocks tick closer to the decision timing, following are the expectations as forecasted by the economists and researchers of 11 major banks along with some thoughts on the future course of Fed’s action.

About the FOMC statement 

Following the Fed's rate decision, the FOMC releases its statement regarding monetary policy. The statement may influence the volatility of USD and determine a short-term positive or negative trend. A hawkish view is considered as positive, or bullish for the USD, whereas a dovish view is considered as negative, or bearish.

About FOMC economic projections 

This report, released by Federal Reserve, includes the FOMC's projection for inflation and economic growth over the next 2 years and, more importantly, a breakdown of individual FOMC member's interest rate forecasts.