The Federal Reserve announced after its monetary policy committee FOMC meeting on Wednesday, October 28, Eastern Time, that it would keep its interest rate policy unchanged at 3.75%-4%.
Previously, on September 16, the Fed launched its first rate hike in three years.
After the decision was released, the market reaction was relatively mild. The two-year Treasury yield briefly plunged, the 10-year Treasury yield maintained its rise, and the decline in gold prices slightly widened to 0.6%.
After Warsh's press conference, the two-year Treasury yield continued to fall, the 10-year Treasury yield showed a V-shaped trend, U.S. stocks rose, the dollar index fell, and gold fluctuated.
Before the Fed decision was announced
Before the Fed announced its rate decision statement, the 10-year Treasury yield and the two-year Treasury yield rose together, gold fell, the dollar index edged lower, and U.S. stocks rose. Details are as follows:
The U.S. 10-year Treasury yield rose about 2.3 basis points, temporarily reported at 5.0196%; the two-year Treasury yield rose 2.9 basis points to 4.7660%.
Spot gold fell 0.5%, temporarily reported at $4,040.
The ICE dollar index fell 0.04%, the dollar rose 0.2% against the yen, the dollar rose 0.1% against the Swiss franc, the euro rose 0.1% against the dollar, the pound fell 0.04% against the dollar, the Australian dollar rose 0.1%, and the New Zealand dollar fell 1.2%.
The S&P rose 0.2%, the Dow rose 0.27%, the Nasdaq was roughly flat, the Nasdaq 100 rose 0.2%, the Philadelphia Semiconductor Index rose 1%, and the bank index rose 0.7%.
After the Fed decision was announced
After the Fed statement was released and before Warsh's press conference, the reaction of major assets was relatively mild, with the two-year Treasury yield and the Bloomberg dollar index showing a brief V-shaped move:
The U.S. two-year Treasury yield briefly plunged and then rebounded, fluctuating in the 4.7619%-4.7744% range while overall remaining higher.
The 10-year Treasury yield maintained its rise, briefly climbing from 5.0051% to 5.0321%.
Spot gold's decline widened again to 0.6%, approaching the daily low of $4,028.18 refreshed at 15:01 Beijing time.
The ICE dollar index staged a V-shaped reversal from 00:00 and, after refreshing its daily high at 102.49 points at 15:12, continued to show a fluctuating downward trend.
The Bloomberg dollar index briefly formed a V-shaped move, with its gain now widening again to 0.08%, temporarily reported at 1226.31 points.
Warsh's press conference
At the press conference, Warsh expressed his determination to fight inflation; he expected six policy-making meetings in 2028; he said interest rates are crucial to AI; credit spreads on some assets have widened, and financial conditions have tightened; he stressed that political considerations played no role in this rate decision.
As Warsh's press conference ended, the U.S. two-year Treasury yield continued to fall, temporarily reported at 4.713%. During Warsh's opening remarks, it had rebounded somewhat, and then the decline continued.
The 10-year Treasury yield showed a V-shaped trend, having fallen back to 4.9968% at 02:43.
The S&P 500 rose 0.1%, the Dow rose 0.12%, the Nasdaq fell 0.03%, the Nasdaq 100 rose 0.25%, the Philadelphia Semiconductor Index rose 1.1%, and the bank index rose 0.4%.
The Bloomberg dollar index fell 0.1%, temporarily reported at 1223.93 points, moving away from the high of 1227.18 points reached at 02:33, just like the two-year Treasury yield, and refreshing a daily low of 1223.16 points at 02:50.
Spot gold fluctuated repeatedly within a 1% price range, reported at $4,052 per ounce as of publication, up more than $10 per ounce compared with before the decision was released.
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