Stupnytska said providing data holds up, inflation and association expectations show signs of reversal and financial conditions ease, a December hike was still likely, “but risks are skewed towards the hiking timeline shifting into 2016 altogether.”
The dollar fell off following the announcement, with David Lamb, head of dealing at forex specialists Fexco saying many were hoping for a more “hawkish hold”.
“Dollar bulls had convinced themselves that even if the Fed left rates unchanged, it would at least give some sort of timetable. Some had even wanted such a ‘hawkish hold’ more than a hike. Instead they got an overwhelmingly dovish hold.”
“The Fed’s concerns about the impact of global threats to the US economy have landed like a bucket of cold water on those who were expecting a rate rise before Christmas.
“As a result the dollar has gone into freefall – and all bets are off on when the rise will come.”
