Created
: 2025.08.21
- 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
Fed's Schmid: Not in a hurry to cut interest rates
Breaking news
Fed's Schmid: Not in a hurry to cut interest rates
New
2025.08.21 20:46
2025.08.21 20:46
2025.08.21 20:46
Federal Reserve Bank of Kansas City President Jeff Schmid said on Thursday that the last mile of inflation will be "pretty hard," per Reuters.
Key takeaways
"Perhaps mortgage applications could be simplified."
"Labor market is solid."
"Some cooling in first couple quarters but there is optimism now."
"Supply and demand for workers seems in balance despite immigration impacts."
"Inflation number likely closer to 3 than 2, there is work to do."
"A lot of data still until September."
"Markets and spreads are in good shape; need definitive data to move the policy rate."
"Not in a hurry to cut interest rates."
"Searching for data that shows Fed policy is restrictive."
"Have to be careful about what lowering short term rates would do to inflation mentality."
Market reaction
These comments received a hawkish score of 6.4 from FXStreet Fed Speech Tracker, lifting the FXStreet Fed Sentiment Index to 106.32.
Meanwhile, the US Dollar (USD) Index was last seen trading marginally higher on the day at 98.27.
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
: 2025.08.21
Related articles
RBNZ's Hawkesby reiterates OCR projected to reach 2.5%
10 minutes agoUSD/CAD holds firm above 1.3850 as traders pile into BoC rate cut bets
40 minutes agoNZD/USD Price Forecast: Struggles at 100-day SMA ahead of US CPI
59 minutes agoUSD/JPY Price Forecast: Stuck in tight range around 147.00 as traders await US data
2025.09.11 06:14EUR/USD steady at 1.1700 as softer US PPI fuels rate cut bets
2025.09.11 05:56Canadian Dollar falls once again as Loonie support withers
2025.09.11 03:11
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
RBNZ's Hawkesby reiterates OCR projected to reach 2.5%
Reserve Bank of New Zealand (RBNZ) Governor Christian Hawkesby on Thursday reiterated that the Official Cash Rate (OCR) is projected to reach 2.5%. Hawkesby further stated that whether the central bank reaches its goal depends on the data.
New
2025.09.11 08:38USD/CAD holds firm above 1.3850 as traders pile into BoC rate cut bets
The USD/CAD pair gains ground for a second consecutive day around 1.3860 during the early Asian session on Thursday. The Canadian Dollar (CAD) weakens against the US Dollar (USD) amid expectations that the Bank of Canada (BoC) would resume its easing cycle this month.
New
2025.09.11 08:08NZD/USD Price Forecast: Struggles at 100-day SMA ahead of US CPI
The New Zealand Dollar advanced on Wednesday, posted gains of over 0.24% as traders digested the latest factory gate inflation report. An evolution of the disinflation process, drove the NZD/USD pair higher, past the 0.9540 mark during the day.
New
2025.09.11 07:49USD/JPY Price Forecast: Stuck in tight range around 147.00 as traders await US data
The USD/JPY remains consolidated on Wednesday as buyers and sellers remain unable to move the markets past the 147.00-147.65 range for the last couple of days. At the time of writing, the major sits at 147.36 down a minimal 0.07%.
New
2025.09.11 06:14EUR/USD steady at 1.1700 as softer US PPI fuels rate cut bets
The EUR/USD remains steady at around 1.1700 on Wednesday as market participants digest US economic data. US Dollar weakness triggered by a softer inflation report and growing speculation for the first rate cut by the Federal Reserve (Fed) keeps the pair trading within familiar levels.
New
2025.09.11 05:56Canadian Dollar falls once again as Loonie support withers
The Canadian Dollar eased further on Wednesday, declining around one-sixth of one percent and putting the USD/CAD pair on track to challenge its key 200-day Exponential Moving Average (EMA).
New
2025.09.11 03:11Forex Today: Focus shifts to US CPI, while the ECB is seen "on hold"
Mounting speculation of further rate cuts by the Federal Reserve next week weighed down the US Dollar (USD) on Wednesday, a view reinforced after US Producer Prices rose less than expected in August.
New
2025.09.11 03:10WTI rises as geopolitical tensions overshadow bearish US EIA data
West Texas Intermediate (WTI) Crude Oil surges on Wednesday, extending its winning streak for a third straight day as geopolitical tensions outweighed bearish US inventory data.
New
2025.09.11 03:05Gold climbs to $3,646 as soft US PPI and geopolitical risks lift safe-haven demand
Gold price surges on Wednesday, up by over 0.60%, folllowing US inflation data, which increased speculation that the Federal Reserve (Fed) will resume its easing cycle at the upcoming September meeting. At the time of writing, XAU/USD trades at $3,646, shy of the record high of $3,674.
New
2025.09.11 02:01Dow Jones Industrial Average misses out on post-PPI rally, declines over 200 points
The Dow Jones Industrial Average (DJIA) missed the mark on Wednesday, shedding over 200 points from the open. US Producer Price Index (PPI) inflation came in below expectations, bolstering bets of interest rate cuts from the Federal Reserve (Fed) next week.
New
2025.09.11 01:30Disclaimer:
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
