The Federal Reserve has left interest rates unchanged as expected. Fresh forecasts narrowly favored three cuts rather than two, weighing on the Greenback. Fed Chair Jerome Powell provided a plethora of dovish comments. Not only has the Federal Reserve left interest rates unchanged, but it has also refrained from changing the median forecast for borrowing costs in 2024.
There is no rush to crush inflation further. 3) He downplayed recent inflation data, which was hotter than expected. He said it does not change the overall picture. 4) The Fed is set to reduce its Quantitative Tightening program relatively soon. It means the pace of withdrawing money from markets will slow, thus more dollars sloshing around – a weaker currency and higher risk assets.