No Rate Hike By Fed

The Federal Open Market Committee held interest rates steady after its meeting today, taking a pause from hiking rates for the first time in 25 months. FOMC members decided to keep overnight interest rates at 5.25%. According to FOMC, "some inflation risks remain" but those "seem likely to moderate over time."

Rest of the meetings are scheduled on September 20, October 24 and December 12. We feel it's not time yet to be too bullish. In short term the market may response positively but soon they have to pause and look forward to the outcome of next month's meeting. Rising energy cost and unrest in middle east should be the main concern at present. This is certainly not an opportune moment to rejoice over the pause in rate hike.