The U.S. dollar and Treasury yields across the curve bounced higher after the Fed signaled that a June rate hike is still on the way.
In view of realized and expected labor market conditions and inflation, the FOMC decided to maintain the target range for the federal funds rate at 3/4 to 1%. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2% inflation.
The U.S. Federal Reserve is expected to hold interest rates steady at its meeting this week as it pauses to parse more economic data but may hint it is on track for an increase in June.
President Donald Trump's tax plan, due to be unveiled on Wednesday and proposing to sharply cut rates for businesses and on overseas corporate profits returned to the United States, was likely to be treated by Congress as just an opening gambit.
U.S. President Donald Trump will release a tax plan on Wednesday proposing some deep rate cuts, mostly for businesses, including a slashed corporate income tax rate and steeply discounted tax rate for overseas corporate profits brought into the United States, officials said.
The Greenback and U.S. Treasury yields continued to fall early Thursday, after Trump’s comments to the Wall Street Journal that the dollar is getting too strong. According to the U.S. President, he’s the one to blame for this, because “people have confidence” in him. Maybe not everyone agrees, with his approval rating currently standing at 40%. More importantly, Trump said “I do like a low-interest rate policy” and that the Treasury would not be labeling China a currency manipulator.
One of the consequences of strong inflation is that real rates—what you get when you subtract the current consumer price index (CPI) from the nominal rate—have turned negative. And when this happens, gold has typically been a beneficiary. This is the Fear Trade in action.
The Federal Reserve's (assumed) decision to raise rates 25bps tomorrow will not, in and of itself, move markets. That said, there's still the potential for big movements in the forex and stock markets based on the other components of the Federal Reserve's big meeting. So what will we be watching at come 2:00p.m. Eastern time tomorrow?

Do not let the quiet session on Monday and early Tuesday fool you, volatility may be just around the corner.

The U.S. dollar is higher against most major pairs as the two day Federal Open Market Committee (FOMC) meeting is expected to bring forth the first U.S. interest rate hike of 2017. The FOMC statement will be released on Wednesday, March 13 at 2:00 pm EDT (7:00 pm GMT) with a scheduled press conference from Fed Chair Janet Yellen starting at 2:30 pm. The U.S. central bank is forecasted to hike the benchmark rate 25 basis points at <1.00%.