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: 2024.09.19
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Powell speech: Our decisions are never about politics or anything else
World FX news
Breaking news
Powell speech: Our decisions are never about politics or anything else
New
2024.09.19 04:03
2024.09.19 04:03
2024.09.19 04:03
Federal Reserve Chairman Jerome Powell explains the decision to cut the policy rate, federal funds rate, by 50 basis points to the range of 4.75%-5% after the September meeting and responds to questions in the post-meeting press conference.
Key quotes
"Immigration is one of the things that has allowed unemployment rate to rise."
"Further declines in job openings will translate more directly into unemployment."
"My own sense is we are not going back to negative rates for long-term bonds; it feels neutral rate is higher than it was."
"It feels to me that neutral rate is probably significantly higher than it was pre-pandemic."
"Fed makes decisions based on its service to American people."
"Our decisions are never about politics or anything else."
"Our job is to support the economy on behalf of the American people."
"If we get it right, will benefit the American people."
Interest rates FAQs
Interest rates are charged by financial institutions on loans to borrowers and are paid as interest to savers and depositors. They are influenced by base lending rates, which are set by central banks in response to changes in the economy. Central banks normally have a mandate to ensure price stability, which in most cases means targeting a core inflation rate of around 2%. If inflation falls below target the central bank may cut base lending rates, with a view to stimulating lending and boosting the economy. If inflation rises substantially above 2% it normally results in the central bank raising base lending rates in an attempt to lower inflation.
Higher interest rates generally help strengthen a country's currency as they make it a more attractive place for global investors to park their money.
Higher interest rates overall weigh on the price of Gold because they increase the opportunity cost of holding Gold instead of investing in an interest-bearing asset or placing cash in the bank. If interest rates are high that usually pushes up the price of the US Dollar (USD), and since Gold is priced in Dollars, this has the effect of lowering the price of Gold.
The Fed funds rate is the overnight rate at which US banks lend to each other. It is the oft-quoted headline rate set by the Federal Reserve at its FOMC meetings. It is set as a range, for example 4.75%-5.00%, though the upper limit (in that case 5.00%) is the quoted figure. Market expectations for future Fed funds rate are tracked by the CME FedWatch tool, which shapes how many financial markets behave in anticipation of future Federal Reserve monetary policy decisions.
Last updated
: 2024.09.19
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Australian Dollar on the rise amid Greenback weakness
The AUD/USD rose by 0.70% to 0.6815 in Thursday's session. This marks the fourth consecutive session of gains for the AUD/USD, as the Greenback continues to weaken in the wake of the Federal Reserve's (Fed) 50-basis-point rate cut.
New
2024.09.20 05:30USD/JPY Price Forecast: Clings to gains after failing to clear 144.00
The USD/JPY held on to gains following Wednesday's Federal Reserve decision but traded well below its daily peak of 143.94 as the Greenback registered losses.
New
2024.09.20 05:23Canadian Dollar gets a push from Fed cuts but still hobbled
The Canadian Dollar (CAD) remains overall weaker on Thursday, though the CAD was able to eke out a stronger stance against the Greenback, with the USD getting pummeled after the Federal Reserve (Fed) cut interest rates for the first time in four years by an outsized 50 bps.
New
2024.09.20 04:38Forex Today: Will the BoJ surprise markets?
The Greenback could not sustain the optimism seen during the Asian trading hours, eventually surrendering that advance and ending the day with marked losses as investors assessed the prospects of further easing by the Fed in the months to come.
New
2024.09.20 04:01Gold price benefits from Fed's cut, buyers eye $2,600
Gold prices advanced on Thursday after the Federal Reserve (Fed) embarked on an easing cycle with a 50-basis-point (bps) rate cut.
New
2024.09.20 03:54US Dollar declines as market digests FOMC decision
The US Dollar Index (DXY), which measures the value of the USD against a basket of currencies, is trading flat near 100.70 on Thursday as the market digests the Federal Reserve's (Fed) 50-basis-point (bps) cut.
New
2024.09.20 03:22Dow Jones Industrial Average climbs into another record high
The Dow Jones Industrial Average (DJIA) pierced the 42,000 psychological level on Thursday as equities drove higher in a broad-market bull run after the Federal Reserve (Fed) finally delivered its first rate cut in over four years.
New
2024.09.20 02:37Mexican Peso stays flat following Fed rate cut, eyes on Banxico
The Mexican Peso remained unchanged against the US Dollar during the North American session on Thursday after the Federal Reserve (Fed) lowered interest rates for the first time in four years.
New
2024.09.20 01:24EUR/GBP Price Analysis: Technical outlook favors the downside as selling pressure mounts
Thursday's session saw the EUR/GBP slightly decline by 0.20% below 0.8400.
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2024.09.20 01:00EUR/JPY surges on sentiment improvement yet struggles at 160.00
The Euro rallied sharply against the Japanese Yen on Thursday amid a scarce economic docket.
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2024.09.19 23:13Disclaimer:
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