Federal Reserve monetary policy decisions have become increasingly less important after the central bank took rates interest down to a record low of 0.25 percent. With no further room to ease, tomorrow’s rate announcement could be anti-climatic, which is a big departure from the currency market’s previous obsession with the FOMC rate decisions because of the volatility that it can have on the U.S. dollar.

Although the Federal Reserve did not change interest rates this afternoon, the FOMC announcement led to a significant amount of volatility in the currency market. In our FOMC Instant Insight, we talked about how the dollar rallied because the Fed said that they “may” and not “will” start buying US Treasuries. The market was looking for something more radical such as inflation targeting or a bold announcement that they will immediately start buying long term Treasuries in size, which would have been dollar bearish. In the grand scheme of things, the Federal Reserve delivered nothing new today. So with that in mind, what should we expect now that the FOMC meeting is behind us?