[ccpw id="5"]

Home.forex news reportThe Federal Reserve is switching from data-dependent to increasingly more Trump-dependent

The Federal Reserve is switching from data-dependent to increasingly more Trump-dependent

-


The Federal Reserve is likely to hold off on interest rate cuts in the first half of the year, as persistently elevated core inflation and a resilient U.S. economy in the first quarter keep policymakers cautious, according to analysts at TD. The potential economic impact of new tariffs under a Trump administration in the second quarter further reinforces their view.

While the Fed remains officially data-dependent, TD argues that its decisions are becoming increasingly influenced by political developments:

  • In our view, decisions by Fed officials, while still data-dependent, are increasingly turning more Trump-dependent.

“The Fed meeting offered no directional anchor” analysts noted, highlighting the uncertainty surrounding the policy stance of a new administration and its implications for inflation.

Given this backdrop, TD maintains a bullish outlook on the U.S. dollar, viewing any dips as buying opportunities, particularly against the euro, Canadian dollar, and British pound. They also note that positioning in currency markets has recently become more balanced, potentially setting the stage for further USD strength.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LATEST POSTS

Pound to Euro Forecast: GBP/EUR Holds 1.20

February 14, 2025 - Written by Frank DaviesSTORY LINK Pound to Euro Forecast: GBP/EUR Holds 1.20 UPDATE: The Pound Sterling (GBP) was trapped in a...

Fed Logan (voting in 26): Next couple of months of inflation will be pretty important

The next couple of points of inflation will be pretty important.Even if get better data on inflation, should be cautious on ratesif labor market...

DPN3, the CluCoin and Goobers NFTs founder who gambled away investor funds, sentenced to 27 months in prison

Austin Michael Taylor, a.k.a. DPN3, confessed to investors in 2023 that he had lost their funds gambling on online casinos. Source link

TNB Tech Minute: Airbnb Looks to Expand Beyond Rentals

Plus, shares of sports-betting platform DraftKings hit a three-year high. And, Chinese e-commerce companies like Shein and Temu try to bypass Trump to keep...

Follow us

0FansLike
0FollowersFollow
0SubscribersSubscribe

Most Popular

spot_img