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Below are Views On The FOMC policy-makers kept the benchmark rate unchanged at 0.25% By Heena Naik, Research Analyst - Currency, Angel Broking Ltd

*FOMC Monetary Policy Outcome*

* On 22nd Sep '21, the FOMC policy-makers kept the benchmark rate unchanged at 0.25% as per market expectations but were divided over the hike. They are now expecting a lift from either 2022 or 2023 versus the previous support for 2023 for a rate hike. 

* It’s worth noting that the US central bank cut the 2021 growth forecast and remained unclear on when the rate will start rising after the tapering concludes.

* The dot plot provided the first hint of hawkishness with 9 members favoring a 2022 rate hike, up from 7. The PCE forecasts, which are measures of inflation, were also revised sharply higher for 2021, 2022 and 2023.

* Fed Chair hinted at the positive conditions matching for the consolidation of the asset purchase and also signaled that a tapering process that concludes around the middle of next year is likely to be appropriate.

* The US Dollar Index hit its highest in a month after the policy release where the stage was set for rate hikes next year — far sooner than its developed market peers are expected to move.

* USDINR is likely to move higher where 74.00 remains a major psychological level break of which could push it towards 74.20 and higher levels. EURINR and GBPINR shall also move Higher due to same.

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