Forex News – U.S. Stocks Remain Little Changed after FOMC Rate Decision

By ForexMansion.com

The Federal Open Market Committee announced on Wednesday that it left the benchmark interest rates unchanged at a record low between 0.00% and 0.25%, while confirming that the $600 billion QE2 will end as planned, and the Fed will continue to reinvest maturing mortgage and debt securities.

The FOMC decision was in line with expectations, while the FOMC statement only confirmed that the recovery slowed down during the second quarter of this year, while inflationary pressures picked up on rising energy and food prices, nonetheless, the long term inflation expectations remained stable according to the Fed.

The Fed signaled that interest rates will remain at exceptionally low levels for an extended period, while the Fed will continue to monitor the economic outlook and the financial developments and will act as needed.

Investors are eyeing a press conference by the Fed's Chairman, Ben Bernanke, as he will announce the new projections for growth inflation and unemployment.

Stocks in the United States were little changed throughout midday trading after the FOMC decision on Wednesday, where the Dow Jones Industrial Average was lower by nearly 0.05% to trade around 12,184, while the S&P 500 index rose by nearly 0.03% to trade around 1296. European stock indexes closed lower on Wednesday, where FTSE 100 was down by nearly 0.04% to trade at 5773 and the DAX was lower by nearly 0.10% to trade around 7278.

The U.S. dollar fell against a basket of major currencies on Wednesday, where the U.S. dollar index was trading at 74.66, compared with the opening level at 74.76. The Euro rose against the Dollar, where the EUR/USD pair traded at $1.4399, compared with the opening level at $1.4375, and the British Pound fell against the dollar, where the GBP/USD pair traded at $1.6118, up from the opening level at $1.6217.

Gold prices rose on Wednesday, where gold traded around $1553 an ounce, and crude oil prices rose to trade near $95 a barrel.

Originally posted here

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