The United States Federal Reserve kept its benchmark interest rate unchanged at a range of 0 to 0.25 percent. This outcome was widely expected because the Fed has been saying that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. However, unlike in the previous FOMC meetings, the decision was not unanimous and Thomas Hoenig voted against the policy action because he believes that “exceptionally low levels of the federal funds rate for an extended period” are no longer warranted. The US dollar reacted positively to the news judging by the initial rally on the USD/JPY exchange rate.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh. Voting against the policy action was Thomas M. Hoenig, who believed that economic and financial conditions had changed sufficiently that the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted
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