The central bank began its monetary easing cycle on Wednesday with a larger-than-usual cut of half a percentage point. The Fed chairman said Federal Jerome Powell This is intended to demonstrate policymakers’ commitment to maintaining the rate of Unemployment Down after inflation fell.
Although investors had anticipated the size of the cut partly because of a series of media reports pointing in that direction ahead of the decision, the large cut defied the expectations of economists polled by Reuters, who were leaning toward a 25 basis point cut.
And the way normal markets reacted to the matter remained Dollar The dollar was in a good position in early Asian trading. The dollar recovered from a more than one-year low against a basket of currencies hit in the previous session, and was last up slightly at 101.03.
In return YenThe dollar rose 0.58 percent to 143.12. The euro fell 0.04 percent to $1.1113, moving away from a three-week high hit in the previous session.
Federal Reserve policymakers expected Federal On Wednesday, they cut their benchmark interest rate by another half a percentage point by the end of this year, a full percentage point next year and a half a percentage point in 2026, but they said the outlook for that distant future was not necessarily certain.
And decline Pound Sterling 0.11 percent to $1.3199 after hitting a peak of $1.3298 in the previous session, its highest level since March 2022.
This came after data released on Wednesday showed that inflation in Britain was stable in August but accelerated in the closely watched services sector. Bank of England closely, boosting bets that the central bank will keep interest rates unchanged later in the day.
The Australian dollar rose 0.05 percent against its US counterpart to $0.6768, while the New Zealand dollar rose 0.04 percent to $0.6210.
