After the November meeting of the Federal Reserve, the EUR/USD pair maintained its neutral position.
On Thursday, the primary currency pair held its ground, with the current EUR/USD exchange rate at 1.0599.
During the meeting, the U.S. Federal Reserve made the expected monetary decisions, leaving the interest rate at 5.50% per annum.
Fed Chair Jerome Powell’s comments, on the other hand, did not offer any surprises. The overall tone remained hawkish, indicating a firm stance. While the Fed is not currently considering a rate reduction, it is leaving the possibility of a rate hike open. The regulator is continuing to slowly taper its balance sheet, primarily by not reinvesting funds from maturing securities. There was no mention of selling other securities. Since March, the balance sheet has contracted from $8.7 trillion to $7.9 trillion.
The Fed views inflation as high and the labor market as robust. The U.S. economy is experiencing rapid growth, and businesses remain resilient.
The Fed does not anticipate a recession, which is a positive sign for the economy. However, some economic adjustments may be necessary to curb the inflation rate.
These comments did not significantly affect the U.S. dollar, and the status quo remains unchanged.
The post Federal Reserve Maintains the Status Quo: Overview for November 02, 2023 appeared first at R Blog – RoboForex.