The FOMC Decides

The Federal Open Market Committee decided to take rates down a quarter point reaching to 2.00% target rate. The FOMC met most market expectations and con-tinued the cycle of rate easing as a correspondence to the recent economic crisis and financial turmoil.

Meanwhile, the feds statement which was the most waited amongst all almost left the door open for further cuts, as it highlighted that economic activity remains weak, and household spending and business spending was subdued, while infla-tion is likely to moderate over time, yet the risks still to the upside.

The feds will act as needed to save the economy from further contraction, that's what left the door open for further easing and expectations wide open for any suggestions.

Markets took the news in a neutral manner, as the statement did not give any clear cut signs about the feds next move, it just hinted that we have to wait and see all economic changes till then, and that will define the next decision.

Dear readers, the decisions ends up a very hectic and busy day for us, and the best thing to do now is to go home and take some rest, and start getting pre-pared for Fridays big jobs' report.

Crown Forex

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