Created
: 2025.01.28
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Scott Bessent pushes a starting 2.5% universal US tariff plan
World FX news
Breaking news
Scott Bessent pushes a starting 2.5% universal US tariff plan
New
2025.01.28 08:22
2025.01.28 08:22
2025.01.28 08:22
Donald Trump's Treasury Secretary pick, Scott Bessent, is pushing for new universal tariffs on US imports to start at 2.5% and rise gradually, per the Financial Times.
Additional takeaways
New universal tariffs on imports to the US would start at 2.5%.
Would then rise gradually.
Would move higher by the same amount each month.
Reasoning being, it'd give the business time to adjust.
Could rise as high as 20%.
Market reaction
At the press time, the US Dollar Index (DXY) is up 0.18% on the day to trade at 107.51.
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the 'de facto' currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world's reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed's weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
Last updated
: 2025.01.28
Related articles
US Dollar adds to gains with tariff talk and PCE as main drivers
7 minutes agoUSD/SGD: Price pattern resembles a rising wedge - OCBC
2025.01.31 20:34Prospect for more RBNZ rate cuts can further weigh on NZD - BBH
2025.01.31 20:25USD/JPY: BoJ's Ueda notes more hikes in the pipeline - BBH
2025.01.31 20:09GBP/USD: BOE s widely expected to slash the policy rate - BBH
2025.01.31 20:06AUD/USD Price Forecast: Falls back as US Dollar refreshes weekly high
2025.01.31 19:56
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
US Dollar adds to gains with tariff talk and PCE as main drivers
The US Dollar Index (DXY), which tracks the performance of the US Dollar against six major currencies, currently trades at 108.25 at the time of writing and is receiving quite a few tailwinds this Friday.
New
2025.01.31 21:49USD/SGD: Price pattern resembles a rising wedge - OCBC
USD/SGD was a touch firmer as Trump's tariff threats ahead of 1 Feb deadline undermined sentiments. Pair was last seen at 1.3540, OCBC's FX analysts Frances Cheung and Christopher Wong note.
New
2025.01.31 20:34Prospect for more RBNZ rate cuts can further weigh on NZD - BBH
NZD/USD is firmer but the prospect for more RBNZ rate cuts can further weigh on New Zealand Dollar (NZD), BBH FX analysts note.
New
2025.01.31 20:25USD/JPY: BoJ's Ueda notes more hikes in the pipeline - BBH
USD/JPY is holding above technical support at 154.00, BBH FX analysts note.
New
2025.01.31 20:09GBP/USD: BOE s widely expected to slash the policy rate - BBH
GBP/USD is range-bound around 1.2450, BBH FX analysts note.
New
2025.01.31 20:06AUD/USD Price Forecast: Falls back as US Dollar refreshes weekly high
The AUD/USD pair surrenders a majority of intraday gains after facing selling pressure above 0.6230 in Friday's European session but is still almost 0.2% higher at the press time.
New
2025.01.31 19:56USD/CAD: Canada's November GDP is the domestic focus - BBH
USD/CAD pulled back to 1.4450 after a kneejerk uptick near 1.4600 yesterday.
New
2025.01.31 19:48DXY: Boosted by tariff threats - OCBC
USD dipped after 4Q GDP disappointed but erased losses after Trump drummed up tariff threats. Specifically, he spoke about 25% tariffs on about $900bn worth of goods from Canada and Mexico on 1 Feb (Sat). Cautious trading dominated sentiments.
New
2025.01.31 19:31EUR/USD slides on soft inflation in Germany's six states, Trump's tariff threats
EUR/USD faces selling pressure and declines to near 1.0370 in Friday's European session.
New
2025.01.31 19:17Gold at fresh all-time highs ahead of US PCE
Gold's price (XAU/USD) is trading around a fresh all-time high, for now on record at $2,800.93, with still a long Friday ahead.
New
2025.01.31 18:54Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
