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: 2025.08.19
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US Treasury's Bessent: Fed rate cut could facilitate a pickup in home building
World FX news
Breaking news
US Treasury's Bessent: Fed rate cut could facilitate a pickup in home building
New
2025.08.19 21:17
2025.08.19 21:17
2025.08.19 21:17
United States (US) Treasury Secretary Scott Bessent said on Tuesday that a rate cut by the Federal Reserve (Fed) could facilitate a pickup in home building and keep prices down for one to two years down the road, per Reuters.
Bessent further noted that the tariff revenue will be revised up substantially from $300 billion this year and added that they will use tariff revenue to pay down US debt and bring down deficit-to-GDP.
Market reaction
These comments don't seem to be having a noticeable impact on the US Dollar's valuation. At the time of press, the USD Index was down 0.15% on the day at 98.00.
Fed FAQs
Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.
The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials - the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.
In extreme situations, the Federal Reserve may resort to a policy named 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 during crises or when inflation is extremely low. It was the Fed's weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.
Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.
Last updated
: 2025.08.19
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Canadian Dollar weakens after July CPI undershoots forecasts
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2025.08.19 21:31US Treasury's Bessent: Fed rate cut could facilitate a pickup in home building
United States (US) Treasury Secretary Scott Bessent said on Tuesday that a rate cut by the Federal Reserve (Fed) could facilitate a pickup in home building and keep prices down for one to two years down the road, per Reuters.
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2025.08.19 21:16Gold consolidates amid easing yields, soft US Dollar and geopolitical caution
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2025.08.19 20:35GBP quiet despite continued support from fundamentals - Scotiabank
The Pound Sterling (GBP) is entering Tuesday's NA session with a modest 0.1% gain, lagging its European currency peers while slightly outperforming growth-sensitive commodity peers CAD and AUD, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
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2025.08.19 20:33EUR extending consolidation around 1.17 - Scotiabank
The Euro (EUR) is up 0.2% against the US Dollar (USD) and outperforming most of the G10 currencies as we head into Tuesday's NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
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2025.08.19 20:30CAD underperforms again - Scotiabank
The Canadian Dollar (CAD) is marginally softer versus the US Dollar (USD) on the day, with a mild net loss on the session contrasting--once again--with moderate gains for the major currencies, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
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2025.08.19 20:29Gold Price Forecast: XAU/USD picks up but remains within range below $3,360
Gold (XAU/USD) is trading with a moderate positive bias on Tuesday, trading at $3,340 area after bouncing from $3,325 lows earlier on the day.
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2025.08.19 20:25BoE to cut bank rate by 25 bps to 3.75% in Q4 - Reuters Poll
50 of 62 economists polled by Reuters said that they expect the Bank of England (BoE) to cut the policy rate once more this year, in the fourth quarter, by 25 basis points to 3.75%.
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2025.08.19 20:25Disclaimer:
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