Fed Interest Rate Decision comes in at 4.00% against 4.00% consensus

The Federal Reserve today announced its Interest Rate Decision, holding the rate steady at 4.00%. This figure matched the market consensus of 4.00% and remained unchanged from the previous rate of 4.00%. The release showed a 0.0% surprise versus consensus, indicating the outcome was fully anticipated by analysts.

Following the announcement, market reaction has been limited so far. AUDUSD moved +0.8 pips after 5 minutes and -1.7 pips after 15 minutes, compared to a median 1-hour move of 25 pips. EURUSD saw a +2.5 pip move at 5 minutes and -1.2 pips at 15 minutes, against a median 1-hour move of 28 pips. GBPUSD was up +3.4 pips at 5 minutes and +1.4 pips at 15 minutes, with a median 1-hour move of 34 pips. NZDUSD moved -0.1 pips at 5 minutes and -2.8 pips at 15 minutes, compared to its median 1-hour move of 24 pips. USDCAD moved -0.6 pips at 5 minutes and -0.5 pips at 15 minutes, against a median 1-hour move of 24 pips. USDCHF saw a -1.2 pip move at 5 minutes and +1.9 pips at 15 minutes, compared to a median 1-hour move of 22 pips. USDJPY moved -2.0 pips at 5 minutes and +3.0 pips at 15 minutes, against a median 1-hour move of 27 pips. XAUUSD moved -44 pips at 5 minutes and -64 pips at 15 minutes, compared to a median 1-hour move of 79 pips. These measured moves are generally small relative to the typical 1-hour moves observed after past releases.