FOMC Monetary Policy Update By Heena Naik, Angel One Ltd
Below is Quote on FOMC Monetary Policy Update By Ms. Heena Naik, Research Analyst - Currency, Angel One Ltd
In the recent FOMC Monetary Policy, the US Feds committee hiked the benchmark rates by 25 bps as widely anticipated by markets. In his statement, Fed Chair Jerome Powell said that the central bank has made progress in its battle against inflation, even as he warned that additional rate hikes are likely warranted.
On the recent easing of financial conditions, he said that the focus is “not on short-term moves but on sustained changes.” This was taken positively by the markets, as they had been bracing for harsh commentary from the Fed aimed at cooling the recent run-up in risky assets that could complicate its fight against inflation.
Powell’s comments, along with the robust release of ADP Employment Data, make the markets believe that the committee may remain too dovish regarding how high rates will go and how long they will stay there. This pushed the US Dollar Index lower into bearish territory; helping all other shared currencies to rise in turn.
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