The Fed decided to maintain the interest rate in the level of 0.25% and said that they will continue th monthly obligation purchase. The value is around $120 million based on the data. 

In the announcement stayed on Thursday, FOMC also gives a sign that the progress through the inflation target and employment has been seen. However, the speed is not enough. 

It is especially to trigger any policy changes. In some last times, The Fed got so many input from several parties to make their monetary tightening schedule as soon as possible. 

That must be done in the middle of the inflation jump. The chief or leader then gives his statement about that. The statement from Powell is then highlighted by the market participants. 

Tapering Schedule is Based on The Fundamental Data

Last December, the committee indicated that they will continue to increase the asset purchase up to $120 million per month. That will be done until the substantial progress is achieved. 

Since that time, they see the US economy has been making a progress through the aim which has been made so far. The committee will continue to assess the progress in the next meeting. 

The tapering schedule is based on the fundamental data gotten in the future. Powell said that the Fed at least meds some strong bases to overcome the employment market. 

Those are not completely recovered from the pandemic effect. Due to the concern about the delta corona virus spread, Keeplin Powell said that it can be redeemed by the wide vaccination program. 

The Economic Implication May Be Happened 

It must be known that there will be the economy implication in every coronavirus wave. That is why; it is important for the Federal Reserve to monitor it carefully from now and on. 

Generally, The Fed statement this time is not giving too many surprises and still in line with the market expectation. That organization will be carefully taking a decision amidst the COVID-19 increasing cases. 

It is especially in the United States lately. It is because the Delta variant has a potential to make America applies the lockdown again just like what was happened in several countries. 

That thing can threat the employment market recovery which is awaited by so many people for so long to do a monetary tightening. Greenback is now also highlighted by the people. 

The FOMC Meeting Result Announcement 

Greenback felt down after the result of FOMC meeting was announced and the Fed leader press conference yesterday morning. The index of USD (DXY)  has been weakening for more than 0.2%.

It was in the level around 92.00 per the early European trading session yesterday. Comdoll and Sterling gets the gets the biggest benefit versus the US dollar. Meanwhile, the EUR/USD is stronger. 

It comes to the level of 1.1874 and the USD/JPY has been falling to 109.77. The USD/IDR is also falling by 0.1 percent. The FOMC meeting result announcement is not showing any policy changes. 

However, Jerome Powell confirmed that he will monitor the economy impact from the delta variant. In a press conference, Powell said that the interest rate increase is still far away. 

The Dovish Statement Triggers the Weakening USD

Based on the concern from the previous analysts, the Jerome Powell statement which was quite dovish triggers the weakening US dollar to several currencies. It is because of a reason. 

The falling projection of The Fed interest rate increase is translated as the tapering delay. In a short-term period, there is a decline in the tapering anticipation and that is why; dollar is then weakening. 

The lack of urgency to start the tapering has been declining the 10Y US treasury yield and make USD is weaker than Euro. Meanwhile, the global risk sentiment recovery is also the cause. 

The China Securities Regulatory Commission tells the brokers that they will continue to let the companies for IPO in the USA. This news decrease the worries due to the China’s technology sector tightening.