The Fed left interest rates unchanged as expected, but noted increased risks of inflation
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Fed kept interest rate unchanged in the range of 4.25%-4.5%, as was widely expected.
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The Fed said uncertainty about the economy has increased further.
“Uncertainty about the economic outlook has increased further,” the post statement said. The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen."
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The statement pointed out that despite swings in net exports, the economic activity “has continued to expand at a solid pace”.
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S&P 500 futures shed 0.5% while Nasdaq composite fell 1% following the fed statement.