The dollar was slightly stronger yesterday ahead of the Federal Reserve’s announcement on interest rates. However, it weakened after Fed Chair Jerome Powell said that they will keep rates on hold, and would not raise them until they see a significant and persistent move in inflation. Powell also added that the Fed does not respond to trade war headlines.
Economic data for the US showed that consumer prices increased in November, which together with strength of the labour market, supported the expectation that the Fed would keep rates on hold.
Today, Donald Trump will meet with advisers to discuss the tariff deadline on the 15th of December. So far, it’s unclear as to whether these tariffs will be delayed, scrapped, or if they’ll go ahead due to the fact that a phase one trade deal hasn’t yet been signed.
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