The dollar is weak across the board this morning after the Federal Reserve’s policy announcement yesterday. Despite the Fed deciding to keep interest rates steady for now, it signalled that it is ready to lower interest rates in the near future due to risks at home and globally.
Federal Reserve Chair, Jerome Powell, suggested that interest rates could be cut as early as next month due to a weak US economy and trade tensions. Treasury yields also fell to their lowest in more than two years, which didn’t do the dollar any favours.
Further to this, the greenback came under additional pressure as it was reported that Donald Trump could demote and replace Powell. However, Powell has since hit back by saying “the law is clear that I have a four-year term, and I fully intend to serve it.”
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