Federal Reserve, interest rate
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Last month, the Federal Open Market Committee (FOMC), a policymaking body at the Fed, projected two additional quarter-point rate cuts over the remainder of the year. By contrast, Trump has called for rate cuts totaling as much as 3 percentage points. Trump has carried out a pressure campaign at the Fed with little precedent.
Global equity funds attracted massive investments in the week to October 29 ahead of an anticipated interest rate cut by the U.S. Federal Reserve and a trade deal between U.S. President Donald Trump and Chinese President Xi Jinping.
The Federal Reserve this week cut interest rates again. How will the dollar react? The chart from Macrobond shows how the dollar index DXY has moved in a year’s worth of trading sessions before and after the last five cuts.
Stocks and bonds initially rallied after the central bank cut interest rates on Sept. 17, but began giving up those gains before Federal Reserve Chair Jerome Powell started his post-meeting press conference.