Forex Trading - FOMC Unimous About Keeping Rates Unchanged

Forex Trading - FOMC Unimous About Keeping Rates Unchanged. In forex trading yesterday, the Fed was torn between the inflation issue and housing. In the end they decided to keep rates unchanged.

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According to the minutes of their metting held on May 9, the Fed officials expect the economy to improve this year and they eye inflation as their main concern. They also list the the risk that the housing recession may ``weigh heavily'' on growth. The also said the risks of a slowdown have ``diminished slightly.''

``Recent developments were seen as supporting the Committee's view that maintaining the current target rate was likely to foster moderate economic growth and a gradual ebbing in core inflation,'' the minutes said.

The minutes of the Fed meeting on may 9 was the event that was widely expected by the forex markets yesterday, but it hardly move the market. The pound was up just 16 pips 1 hour after the report, and the euro was up just 10 pips.