Fed Holds Interest Rates Steady; USD Surges Higher

By IBTimes Staff Reporter | January 27 2010 8:19 PM

In an effort to continue aiding the economic recovery in the United States, the Federal Reserve Board announced its decision to hold interest rates steady at 0-0.25%. The announcement came off as surprisingly optimistic according to some results, which is what likely caused the US Dollar to surge against a number of rivals in the moments after the report.

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Interestingly, one of the Fed Board chairmen - Thomas Hoenig from the Kansas City branch - dissented from the majority opinion at the latest meeting and said the economy is in recovery, and holding the rates at a record low for an extended period of time may cause damage in the long run.

Commodities also reacted heavily to today's crude oil inventory report and equity performance. The price of Gold, Silver, Crude Oil, and even Platinum all plunged sharply directly after the figures were released, and after equities declined on news from China and various oil producers regarding plans for economic growth and other various measures.