November 8, 2024
Federal Reserve Cuts Federal Funds Rate By 25 Bps thumbnail
Business

Federal Reserve Cuts Federal Funds Rate By 25 Bps

Fed sees risks to both sides of its dual mandate.”, — write: www.fxempire.com

According to Fed, the risks to achieving employment and inflation goals are roughly in balance. The central bank noted that the economic outlook remained uncertain and that Fed was focused on the risks to both sides of its dual mandate.

Notably, Fed will continue to reduce its holdings of Treasury securities, agency debt and agency mortgage-backed securities. Such sales put some pressure on the debt market and make Fed’s policy less dovish.

Treasury yields moved away from session lows as traders reacted to Fed Interest Rate Decision. The yield of 2-year Treasuries settled near the 4.23% level, while the yield of 10-year Treasuries moved above 4.35%.

U.S. Dollar Index moved back above the 104.50 level after the release of Fed decision. Traders should note that Powell’s press conference starts soon, and U.S. dollar will be sensitive to Fed Chair’s comments.

Gold pulled back after an unsuccessful attempt to settle above the $2700 level as traders focused on the rebound of the U.S. dollar.

SP500 settled near 5975 as traders remained bullish. In the near term, Trump’s victory is a bigger catalyst compared to Fed policy outlook, although Powell’s comments may have a material impact on SP500 dynamics today.

Related posts

CEO of Canadian Crypto Holding Returns Safely After Paying $720K Ransom: Report

coindesk com

Bitcoin ETFs See Record $1.3B Inflows on Trump Win, Fed Rate Cuts

coindesk com

The National Bank of Ukraine gave a forecast of whether utility tariffs will increase in 2025

unian ua

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More