Market update: FOMC announcement of no rate hike (26 July 2017)

July 26, 17:  2:00 PM FOMC Rate Decision

Fed says stimulus wind down to begin 'relatively soon,' leaves rates unchanged

• The FOMC unanimously voted to keep the fed funds target range at 1.00%-1.25%. 
• Regarding the central bank's $4.5 trillion balance sheet, the Fed indicated that it expects to begin the paring process "relatively soon", which has been largely interpreted as September. 
• The CME FedWatch Tool now points to the March FOMC meeting (from December) as the most likely time for the next rate-hike announcement with an implied probability of 55.1%.