The dollar has weakened against a basket of currencies this morning following the Federal Reserve’s interest rate decision yesterday.
As expected, the Federal Reserve increased its interest rate by 0.25% for the first time since 2018. The FOMC’s press release said, “Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures.”
Fed Chair, Jerome Powell, said that inflationary pressures will continue in the coming months. As it stands, the Fed expected to hike the interest rate six more times this year.
Data revealed yesterday that US retail sales increased 0.3% month-on-month, below expectations of 0.4% due to rising inflation.
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