The Bank of Japan is set to release its monetary policy statement sometime tonight. The Federal Open Market Committee’s decision to cut the range for the interbank overnight lending fee (fed funds rate) and the interest rate it pays on reserves left on deposit with the Fed by 25 basis points. The cut was expected but the dollar continued on its path of currency strengthening.
The dollar index, according to MarketWatch, is at 108.06 as of 9:53 PM EST.
Reuters reports that traders may be dialing back expectations of the Federal Reserve easing progressively in 2025 with two to three rate cuts forecasted. The smaller number of expected cuts are in light of increased inflation expected next year.
Alton Drew
18 December 2024
Lawyers Write the Bets. Bankers Sell the Bets. 