July 26, 2017
There were no surprises in the July FOMC statement as rates held steady and no further hints were given for the start of tapering, still expected at either the September or December meetings. Lack of inflation, however, is of increasing concern though other economic assessments from the FOMC held steady and positive.
The Dow was also steady and positive posting a 0.5 percent gain to 21,711. With September a no more likely start than December for the beginning of Fed bond selling, demand for Treasuries rose with the 10-year yield down 5 basis points to 2.28 percent. As demand for Treasuries rose after the statement, demand for the dollar fell with the dollar index down 0.6 percent to 93.50.