Gorila Capital news
Fed holds rates, but a divided committee keeps a December hike on the table
· fxecohot
The Federal Reserve left its policy rate unchanged on 28 October; Chair Kevin Warsh then briefed reporters. The decision was not unanimous, and markets read the message as a pause rather than the end of tightening. US 10-year Treasury yields edged higher after the statement.
Our view
We see the dollar supported on dips while December stays live. Rising yields after a hold tell us the bond market is not ready to price cuts. Watch the next US jobs report: a firm print would strengthen the case for one more hike.