The United States Federal Reserve (Fed) stressed its commitment to bringing inflation back to its 2% target, as announced in the central bank minutes on Wednesday, January 4, 2023. This record corresponds to the December 14-15 meeting, and waiting for the release caused little activity in the forex market. The US dollar was little changed on the news, although short-term interest rate futures fell.
According to the minutes, members stated that given the “persistently and unacceptably” high level of inflation, premature easing of monetary policy was discouraged and that “it would be necessary to maintain a tight monetary policy stance until new data provide confidence that inflation is at a sustained level.” downward path towards 2% which would probably take some time.
Most participants welcomed the easing of the inflation in October and November, but agreed that “a lot more evidence” of progress was needed to confirm the downtrend.
The meeting noted that significant progress had been made over the past year in sufficiently restrictive monetary policy, but that upside risks to inflation remain a key factor in shaping the monetary policy outlook.
Dollar continues to fall after Fed minutes
That dollar The US fell on Wednesday after minutes of the US Federal Reserve’s December meeting offered no surprises or new information on the magnitude of the expected February rate hike.
The dollar index fell 0.47% to 104.22 in the afternoon session against a basket of currency pairs after hitting a two-week high of 104.86 on Tuesday.
With information from Portal.