The Federal Open Market Committee (FOMC) announced on Wednesday that it left the benchmark interest rate, the target range for federal funds, unchanged at 0%-0.25% as widely expected.

More importantly, the Fed decided to reduce its asset purchases by $15 billion per month. 

Follow our live coverage of the FOMC decision and the market reaction.

Market reaction

With the initial market reaction, the greenback weakened against its rivals and the US Dollar Index was last seen losing 0.2% on the day at 93.90.

Key takeaways from the policy statement as summarized by Reuters

"Elevated inflation largely transitory."

"Supply and demand imbalances related to pandemic have contributed to sizable prices increases in some sectors."

"Will begin taper later this month with reductions in treasuries purchases by $10 bln, MBS by $5 bln."

"Similar reductions in pace of purchases likely appropriate each month, but prepared to adjust if warranted."

"Economic activity, employment have continued to strengthen."

"Summer’s rise in COVID-19 cases slowed the recovery of sectors adversely affected by the pandemic."

"Path of economy continues to depend on course of virus."