Ringgit ends firmer against United States dollar as Fed holds rates

Saudi Aramco starts trading, instantly becomes world's most-valued at $1.8T

Chairman Jerome Powell was also questioned on the Fed's ability to raise inflation in the press conference, admitting that it has been a challenge and that the relationship between items like inflation and unemployment has weakened.

"We believe that monetary policy is well-positioned to serve the American people".

In its statement, the Fed reiterated it will watch how the economy develops in the months ahead, global developments and muted inflation pressure. Meanwhile, the latest ISM business surveys softened again while the external environment remains weak with German industrial numbers and Asian trade data reinforcing this message.

As the tariff battle rages some prices have been distorted, and exports of farm goods in particular have suffered.

In response. the Bank of Korea says. the Fed's decision is in line with market expectations. In a demonstration of the disconnect between that low level of unemployment and inflation, the pace of prices increases is expected to rise only to 1.9% next year.


"The need for rate increases is less", he said.

There were few surprises in the Fed's quarterly economic forecasts released Wednesday, with the policy interest rate expected to remain steady in 2020 and end the year at a median of 1.9 percent.

Unemployment is seen staying at its current level of 3.5% through next year, rising to only 3.6% in 2021.

The Fed's unanimous decision to freeze rates comes after it made three straight cuts this year that lifted markets and countered recession fears amid the ongoing uncertainty linked to the U.S.

Asian stocks edged higher on Thursday after the Federal Reserve signalled rate settings were likely to remain accommodative but the imminent United Kingdom election and a deadline for Sino-U.S. trade talks kept investors cautious.

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