Fed: U.S. Interest Rates to Stay in 3.5%--3.75% Range


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- The Federal Reserve announced Wednesday (1/28) it has 
kept benchmark U.S. interest rates in a 3.5%--3.75% range after a two-day 
policy meeting that weighed the risks of a soft labor market versus inflation 
trending higher than the central bank's preferred level.

   "The Committee decided to maintain the target range for the federal funds 
rate at 31/2 to 33/4 percent," the Fed's policy-making Federal Open 
Market Committee said in a statement.

   Prior to January, the central bank cut rates consistently in three rate 
decisions between September and December, resulting in a 75-basis reduction 
from the prior range of 4.25-4.5%.  

   Market moves after latest Fed decision:

NYMEX WTI for March delivery was up $0.69, or 1.1%, to $63.08 bbl, after a 
four-month high at $63.52. The ICE Brent contract for March rose $0.74, or 
1.1%, to $68.31 bbl after peaking at $68.53 earlier -- its highest since 
September.The Dollar Index was up 0.404 points to 96.455 against a basket of 
currencies, rebounding from a four-year low of 95.705 earlier in the session 
that came after four straight days of losses.  The dollar has lost 5% from a 
December high of 99.57 following U.S. trade disputes and coordinated yen 
interventions by global central banks that have diversified their reserves away 
from the currency into gold.


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