Thomson Financial News - The FOMC may well use this meeting to signal that an end to the easing cycle is nearing, given the substantial easing in policy over the past six months. Traders price an 80 percent chance the Fed cuts rates by 25 basis points to 2.0 percent and expect this to be the last rate cut in the current cycle. The Fed signalling a pause would help the U.S. dollar consolidate recent gains while, if the Fed indicates increased concern over high inflation, the greenback could rise sharply. Conversely, should the Fed maintain a clear easing bias, the U.S. dollar will weaken.
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