
- USD/CAD spikes after the Federal Reserve reduces interest rates by 25 basis points to a range of 4.25%-4.50%.
- Federal Reserve’s decision was nearly unanimous, with Cleveland Fed President Beth Hammack casting the sole dissenting vote.
- The Summary of Economic Projections (SEP) reveals only two anticipated rate cuts through 2025 and 2026, aiming for a federal funds rate of 3.4%.
The USD/CAD soared to fresh yearly highs after the Federal Reserve slashed interest rates at the December meeting while opting to adopt a gradual approach to monetary policy next year. At the time of writing, the pair trades volatile
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