With yesterday’s long-time-coming announcement of a 25-basis points rate cut and subsequent hawkish performance by Chairman Jerome Powell, the North American central bank left the markets guessing. Mr Powell’s message hinted at moderate policy moves, just enough to sustain the expansion; he said the central bank is ready to adjust policy as needed, also highlighting the fact that for now he does not foresee the need for further cuts.
The Dollar climbed against other currencies, in the aftermath of the announcement, having in the meantime shaved off some of those gains. To sum it up: The Fed delivered a ‘hawkish cut’, that failed to provide the markets with a clear and decisive direction.
Photo by Jessica Lewis.
