The Federal Reserve maintained the benchmark interest rate at 4.25%-4.50%, as expected. The statement removed language indicating inflation progress, signaling a more cautious approach. The US Dollar Index surged following the announcement.
The Federal Reserve held interest rates steady at the 4.25%-4.50% range, a move widely anticipated by market participants. In a statement released following their meeting, the Fed removed previous language indicating progress toward its 2% inflation target, signaling a more cautious stance on inflation. While the labor market remains robust with unemployment at historically low levels, the central bank's revised language suggests persistent price pressures are a concern.
The US Dollar Index (DXY), which measures the dollar's strength against a basket of currencies, initially jumped to 108.20 following the Fed's announcement. The slightly hawkish tone, coupled with the removal of dovish inflation language, fueled dollar demand. Investors are now closely watching for further clues on the Fed's future policy direction in Chair Jerome Powell's press conference.The statement also acknowledged the continued strength of the US economy, indicating that expectations for rate cuts in the near future are unlikely. The Fed's decision to hold rates steady, while removing dovish language, reflects a balancing act between supporting economic growth and containing inflation. Market analysts will scrutinize Powell's comments for insights into the Fed's next steps and the potential trajectory of interest rates
Federal Reserve Interest Rates Inflation US Dollar DXY Jerome Powell
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Seahawks Reserve Safety K'Von Wallace Returns to Injured ReserveThe Seattle Seahawks have placed reserve safety K'Von Wallace back on season-ending injured reserve after his 21-day practice window expired. This comes following an ankle injury sustained in Week 9.
Read more »
Federal Reserve's Top Banking Regulator to Step DownFederal Reserve Vice Chair for Supervision, Randal Quarles, will resign in February, allowing President-elect Donald Trump to appoint a replacement. This move avoids a potential conflict between Trump and Quarles, who had been rumored to be facing removal. Quarles will remain as a governor on the Fed board, ensuring stability during the transition.
Read more »
Federal Reserve's Top Regulator to ResignMichael Barr, the Federal Reserve's top financial regulator, announced his resignation as vice chair of supervision, effective February 28th. This move avoids potential conflict with the incoming Trump administration and Senate Republicans who opposed his proposed stricter rules for major banks.
Read more »
Federal Reserve's Top Regulator Resigns to Avert Trump Administration ConfrontationMichael Barr, Vice Chair for Supervision at the Federal Reserve, announces his resignation, avoiding a potential clash with the incoming Trump administration. Barr's stricter financial regulations faced criticism from major financial firms and Republicans.
Read more »
Federal Reserve's Top Regulator Resigns Ahead of Trump AdministrationMichael Barr, Vice Chair for Supervision at the Federal Reserve, is resigning to avoid potential conflicts with the incoming Trump administration and Republican-led Senate. Barr will remain on the Fed's board of governors until 2032.
Read more »
Federal Reserve's Top Regulator Resigns Amidst Political PressureMichael Barr, the Federal Reserve's top financial regulator, announced his resignation as vice chair for supervision, averting a potential showdown with the incoming Trump administration. Barr, who will remain on the Fed's board of governors, faced criticism from Republicans and financial institutions over his proposed regulations.
Read more »