Starting from Monday, 29 January, the American stock indices have been demonstrating a decline mainly owing to the FRS decision that was expected to be made at the meeting during 30-31 January. Based on the results of its meeting, the Federal Reserve System (FRS) made the decision to keep the federal funds rates and the overall estimate of the US economic conditions. At the same time, the FRS is expecting that the rate of inflation in the US will grow to the target 2.0% during the current year. At the moment, market participants are estimating the likelihood that the FRS will raise the federal funds rate in March at almost 100%. Right after the FRS decision was made public, the US key stock indices were demonstrating weak growth. However, by the end of the previous week, the indices were dropping at a more rapid pace. The US dollar exchange rate appreciated thanks to the news that the Federal Reserve System is expecting consumer prices to accelerate.   

Financial markets survey 05.02.2018