Investors largely expected the FOMC to cut rates by a quarter point.The Fedread more
The interest on excess reserves now stands at 1.8%, a 30 basis point cut compared with the 25 basis point reduction for the benchmark funds rate.The Fedread more
The decision to cut rates followed a monthslong pressure campaign by Trump, who often criticized Chairman Jerome Powell by name as he called for lower interest rates.Politicsread more
Stocks traded lower on Wednesday as traders digested the Federal Reserve's latest decision on U.S. monetary policy.US Marketsread more
The Federal Reserve dialed up its growth expectations slightly while keeping its inflation projection unchanged.Marketsread more
This is a comparison of Wednesday's FOMC statement with the one issued on July 31 after the Fed's previous policymaking meeting.The Fedread more
Ahead of the Fed's 2 p.m. announcement, many economists were forecasting one further cut in 2019, but some investors were hoping for two more this year.The Fedread more
The Fed has become increasingly divided, with three officials voting against the Fed's quarter-point cut to the fed funds target rate range.Market Insiderread more
For consumers, lower rates do mean cheaper loans, which can impact your mortgage, home equity loan, credit card, student loan tab and car payment. n the flip side, you'll earn...Personal Financeread more
Gold edged lower on Wednesday but held about the key $1,500 per ounce level after the U.S. Federal Reserve decided to cut interest rates.Futures & Commoditiesread more
Gold extended its climb above $1,330 an ounce on Wednesday after the U.S. Federal Reserve left interest rates unchanged as expected and the dollar pared gains against a basket of major currencies.
The U.S. central bank said in a statement following its two-day meeting that near-term risks to the U.S. economic outlook had diminished, opening the door to a resumption of monetary policy tightening this year.
"Gold has defied the marginally hawkish tone of the FOMC statement turning higher and pushing for a close above $1,335, which could prophesy the return of bullish sentiment," said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York.
Gold is particularly sensitive to rising U.S. rates, which would lift the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
The dollar, which was buoyed earlier by reports of a larger than previously expected fiscal stimulus plan for Japan that knocked the yen lower, gave back its gains against a basket of currencies.
"Our economists are expecting a rate hike in December, but if the Fed starts to sound hawkish now, that could weigh on gold," UBS analyst Joni Teves said before the statement was released. "There are downside risks here."
Uncertainty over the path of U.S. rates has eroded nearly 50 percent of the gains gold has made since UK voters shocked global markets last month by voting to leave the European Union.
"Gold's insurance benefits come at a price on these levels," Julius Baer said in a research note. "While Brexit-related uncertainty should be supportive for prices in the short term, the market appears too complacent with U.S. monetary policy."
Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, have seen an outflow of nearly 28 tonnes in the last three weeks.
Among other precious metals, spot platinum surged 3.67 percent at $1,132.30, after hitting the highest in nearly 14 months, extending gains after the Fed statement.
Spot palladium has risen every day this week, following five straight weeks of gains. On Wednesday, it climbed to a 9-1/2-month high, firming by as much as 2.36 percent at $703.20.
Silver spot prices were up 3.73 percent at $20.35 an ounce.