INSUBCONTINENT EXCLUSIVE:
The US Federal Reserve was at its dovish best on Wednesday when it kept interest rates steady and signalled that hikes were off the table
earlier projection of two hikes in 2019
It kept benchmark overnight lending rate, or federal funds rate, in a range of 2.25 per cent to 2.50 per cent"
The decision was unanimous, a 10-0 vote.
The policy statement was taken as positive by Wall Street, with US stocks making a sharp recovery
holdings from $30 billion to $15 billion beginning May and halt the drawdown in September
to stay put on rates came amid forecast of the US entering recession in 2020 or 2021
The zero hike for this year compares with two hikes in December forecasts, which had spooked global stocks then.
Market on Friday is likely
grows.
Dollar takes a knockThe US dollar fell sharply against a basket of major currencies on Wednesday after the policy decision.
The fall
is expected to give a further to boost to the rupee, which is enjoying a good run amid strong foreign capital inflows.
Gold may shine
brightWith the Fed expressing increasing concern over slowing US economic growth, gold is expected to shine brighter on Friday as greater
uncertainty enhances its store value
In the US trading, gold climbed 0.7 per cent to $1,315.50 per ounce, having risen to nearly three-week high of $1,315.61, Reuters
reported.
What US traders are sayingUS interest rates traders on Wednesday piled on bets that the Federal Reserve would cut borrowing costs
in early 2020, Reuters reported.
Federal funds futures, which reflect traders' view on Fed policy, rose after the Fed showed no hurry to
