The Federal Reserve left rates unchanged despite Fed funds futures implying a 30% chance of an increase. The Committee split 9-3, with Kashkari, Hammack and Logan voting to raise rates. The US dollar sold off: the dollar index slipped below 101.00 and was down 0.5% on the day, while it later found support around 100.80. Treasury yields also eased, with the 2-year retreating from above 4.34% to 4.24%, and equities firmed; the Nasdaq bounced after having entered correction territory earlier in the week.<\/p>\n
Markets appeared to focus on the unchanged statement and the absence of a hike from the chair, even as the Fed reiterated its 2% inflation target and referred to tighter market-based rates over the past 2 months.<\/p>\n
Separately, business investment tied to AI capex has been rising at a 20% pace over the last four quarters. Attention now turns to the chair\u2019s keynote at Jackson Hole next month, alongside big tech earnings from Microsoft, Meta and Amazon. US chip shares remained under pressure, with the Philadelphia Semiconductor Index down 1.6% on Wednesday after the press conference.<\/p>\n\n\n\n