FOMC kept FF target rate unchanged at 1.25-1.50% range by unanimous decision.

Statement seems slightly hawkish;

  • Economy to warrant further gradual increase in rates
  • Inflation is expected to move up this year

This was the last FOMC meeting for Ms Yellen as a Chairwoman, market is now expecting a 25bp hike at the next meeting in March which will be chaired by new chairman, Jerome Powell.