Investors were comfortable with the comments, even as Powell also said rates would continue to rise and inflation rein in. “It will require keeping the policy at a restrictive level for some time.”
“We see that the consumer is still keeping up with their spending and, furthermore, the claims for unemployment benefits are increasing. So, we will probably start to see the unemployment rate go up and I think this will support the idea that we will see the unemployment rate rise.” Fed is close to ending its tightening cycle,” said Edward Moya, an analyst at OANDA in New York.
Data on Thursday showed that consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.8% after an unrevised 0.6% rise in September.
The dollar index fell to 104.66 against a basket of currencies, the lowest level since August 11, and is now below its 200-day moving average, which could signal more pullbacks ahead.
in the day, the euro it hit $1.05340, the highest since June 29.
For his part, he dollar fell to 135.24 yen, its lowest level against the japanese coin since August 18. The pound sterling it hit $1.23115, the highest threshold since June 27.
Federal funds rate futures traders now expect the Fed’s top rate to top out at 4.91% in May, up from 3.83% today. Traders had considered a cap of more than 5% before Powell’s comments on Wednesday.
Source: Ambito
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