The dollar rose and the S&P 500 and US Treasuries held roughly steady, as the Federal Reserve kept interest rates unchanged and remained on course to instead tighten monetary policy in December.

The decision was widely expected by markets, and the Fed made few changes to its policy statement.

15 minutes after the release of the statement, the S&P 500 was sitting 0.2 per cent lower, about the same level it had been beforehand. The Dow Jones Industrial Average pushed a touch higher to be up 0.2 per cent and the Nasdaq Composite also recovered ground to be 0.4 per cent lower.

The dollar was the most visible mover, with the DXY index up 0.5 per cent at 96.491.

Treasuries remained weak, as yields remained higher on the day. The yield on the benchmark 10-year US Treasury was up 1.7 basis points to 3.2299 per cent, steady from before the decision, but the yield on the more policy sensitive two-year crept higher, according to Refinitiv.

Heading into today’s meeting, the S&P 500 on Wednesday chalked up one of its biggest pre-Fed decision gains of the past decade, giving investors an easy reason to take their chips off the table today.

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