The Fed’s divided vote left its benchmark unchanged as the yen pared earlier losses and the dollar weakened during Federal Reserve Chair Kevin Warsh’s Wednesday briefing.
The Federal Open Market Committee (FOMC) voted 10-2 on Oct. 28 to keep the federal funds target range at 3.75% to 4.00%. Fed Governor Lisa D. Cook and Cleveland Fed President Beth M. Hammack favored a 0.25-percentage-point increase. The Fed issued its statement at 2 p.m. ET.
The committee said inflation was still elevated, with its goal set at 2%. The latest Bureau of Economic Analysis (BEA) data showed the Personal Consumption Expenditures (PCE) price index rose 3.4% year over year in August. The index excluding food and energy increased 3.0%.
Currency reports showed the dollar easing against the yen in separate readings. Before the Fed decision, USD/JPY stood at 158.19, up 0.15%, at noon ET, Economies.com reported. FXStreet put the rate at 157.89, down 0.02%, at 4:22 p.m. ET. Reuters later reported 157.87, down 0.04%, at 5:42 p.m. ET, and said the dollar began losing ground during Warsh’s briefing.
Economies.com linked earlier pressure on the yen to expectations that U.S. interest rates would stay high and to stronger demand for technology stocks. EconoTimes previously covered yen trading near ¥157.70 ahead of the Fed and Bank of Japan meetings.
The BEA scheduled its September Personal Income and Outlays release, including PCE figures, for 8:30 a.m. ET Thursday, Oct. 29. The Bank of Japan (BoJ) meets Oct. 29-30, and the Fed’s next meeting is scheduled for Dec. 8-9.
