
- EUR/USD experiences sharp decline in response to the Federal Reserve’s 25 basis point rate cut paired with a cautious outlook on future policy adjustments.
- Fed Chair Jerome Powell emphasizes a careful approach to further rate changes, noting persistent inflation risks, stable labor market.
- Fed’s updated economic projections indicate only modest rate reductions in the coming years, setting the federal funds rate target at 3.4% by 2026.
The EUR/USD sank sharply after the Fed cut interest rates but also adopted a slightly hawkish stance, as the central bank estimates 100 basis points of easing toward the next two years.
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