The policy making arm of the U.S. central bank acknowledged the globe's largest economy had a rough first half of 2012 but it stopped short of implementing any stimulus programs, according to Bloomberg.
After adjourning two days of meetings on Wednesday, the Federal Open Market Committee indicated that it is set to act if needed. Consumer spending dropped, economic development and growth slackened and the unemployment rate remained at 8.2 percent.
"The statement clearly had a dovish bias, with the Fed saying that the U.S. economy is decelerating and it seemed like there is some stimulus action in the works. But overall it was less dovish than the market had hoped," senior currency strategist Richard Franulovich with Westpac in New York told Reuters. "Again, there were very few details on further Fed action. So I think that's why the dollar rallied."
The Fed will meet again in mid-September but, until then, officials are likely to review economic data about employment figures for last month and this month.
The world's reserve currency advanced against the common currency of the European Union and the Japanese yen shortly after the FOMC adjourned.
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