As widely expected, the Federal Reserve cut interest rates for the second time since late July yesterday, announcing a cut by 25 basis points. In a press conference, Fed Chairman Jerome Powell said that the US economy is looking strong with low unemployment, but stated that there are “risks to this positive outlook.” He went on to say that if the economy weakens, a more extensive sequence of rate cuts could be put into place.
A response from the President is now always expected after a Fed meeting. Trump told reporters, “I think it’s fine. I think that frankly they should have acted faster.” He also tweeted to say that Powell had “no guts, no sense, no vision!”
A series of economic data will be released for the US today, including jobs and home sales figures.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.
