U.S. Dollar Flat as Powell Promises to ‘Sustain’ Economic Expansion  By Investing.com

0
5

© Reuters.

Investing.com – The U.S. dollar was flat on Friday after Federal Reserve Chairman Jerome said the central bank would keep an eye on the economy and act as needed, but failed to give any new guidance on interest rates.
“We will act as appropriate to sustain the expansion,” Powell said in prepared remarks at the Fed’s Jackson Hole, Wyom. summit. The economy is in a “favorable place” he said, but the trade war puts it in a “complex, turbulent” situation. The central bank is at an unprecedented place as it tries to set monetary policy to help the economy overcome the tensions caused by the U.S.-China trade war.
The slowdown has been visible for months in China, Japan and Europe, and is just starting to reach U.S. manufacturing with the of activity dropping below 50 for the first time in nearly 10 years in August.
Still, domestic economic strength continues, with inflation nearing 2% and and the job market at historically strong levels.
Powell seemed to push back against pressure to cut rates aggressively. U.S. President Donald Trump has called for a full percentage point cut and markets expect the central bank to keep easing its monetary policy.
The , which measures the greenback’s strength against a basket of six major currencies, inched up 0.1% to 98.132 as of 10:15 AM ET (14:15 GMT).

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here