Bas van Geffen, Quantitative Analyst at Rabobank, notes as widely expected the FOMC decided to leave rates on hold. Key Quotes “The surprise came in the magnitude of the downward adjustment of the dot plot. The number of rate hikes foreseen by FOMC members was cut to 2, down from 4. In tandem with this, the Fed also reduced its inflation and growth forecasts for 2016 as well as the growth forecast for 2017, as discussed in more detail in our post meeting comment. While this move brings the dot plot in line with our projections of only two rate hikes in 2016, the market interpreted it as a decidedly dovish signal.” For more information, read our latest forex news.