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- On Wednesday, the minutes of the Federal Reserve gathering are scheduled from 18 to 19 March.
- The Federal Reserve made a cautious contract at the March event.
- Investors are considering reducing a possible price at the May 7 meeting.
I waited impatiently for minutes of US (The United States) The monetary policy meeting is scheduled to be issued from March 18 to 18 to 19 March. During the assembly, policy makers agreed to maintain Fed Anverds (FFTR) unchanged at 4.25 % -4.50 %.
The most prominent summary of economic expectations (SEP) is a clear sense of uncertainty within the FOOC Open Market Committee (FOMC).
In fact, revised Expectations In 2025 and 2026, it was significantly reduced, indicating caution among policy makers. However, despite the most conservative expectations, federal reserve expectations still expect two federal funds in 2025, confirming a continuous commitment to cash dilution.
The Federal Reserve delivered a honesty contract, and Powell confirmed that
In a decisive step, the Federal Open Market Committee voted unanimously to maintain the policy price fixed in March. However, two issues dominated the discussions: a cloud of uncertainty and influence that waves on the horizon in the American definitions.
At his routine press conference, Federal Reserve President Jerome Powell described the uncertainty as “unusually high.” He explained that the Central Bank officials were struggling with great challenges in updating economic expectations amid a wave of new political moves from the Trump administration. Powell warned that the Federal Reserve may face a delay in pushing the targets of inflation forward, as inflation began to climb – the effect of its lineage, at least in part, to the definitions.
Speaking to business journalists in Virginia on April 4, Powell noted that President Donald Trump’s new tariff proved that she was “greater than expected.” He drew a picture of an economic scene where increased tariffs can lead to increased inflation and slower growth, which may lead the central bank to a series of difficult decisions.
In addition to the conversation, the ruler of the Federal Reserve, Adriana Kogler, noted that the recent increase in enlarged goods and market services may be a provision for the full impact of definitions. She emphasized that despite the changing economic islands, the priority of the Federal Reserve Bank must remain with the preservation of inflation under examination.
When will FOMC minutes be issued and how can it affect the US dollar?
FOMC is scheduled to release minutes from the Policy meeting from March 18 to 18:00 GMT on Wednesday, and market observers are preparing for major visions.
Participants will be on a special alert for any hints regarding a slowdown in the pace of quantitative tightening (QT) and the discussions that lead to price receptors to the display of “recession” scenarios to the updated “plot of points”.
President Powell reassured that the economy is still in a good situation, although the increased uncertainty and potential slowdown in economic activity can pressure the US dollar (USD). The debate is expected to appear on the possible effects of American definitions.
In a recent briefing, the chief analyst Pablo Biovano from Fxstreeet Show a look at US dollar index (DXY).
He said: “In the case of the sellers restoring, the index must fulfill its immediate hypocrites at the bottom of 2025 of 101.26 (April 3) and higher in the 2024 basin of 100.15 (September 27), only shy of the decisive level of 100.00.”
He added, “On the other hand, you must find the episodes of the cross force, on the first of the weekly peak of 104.68 (March 26), which is a little less than the simple moving average for 200 days at 104.83. While the additional losses in DXY should remain good on the cards.”
Biovano also indicated that the momentum Indicators A hint at additional extravagance in the short term-with the daily relative power index hovering around the 42nd region and the average trend index near 37, indicating that the current trend may bring an additional power.
Fed questions and answers
The monetary policy in the United States is formed by the Federal Reserve (Fed). The Federal Reserve has two states: to achieve price stability and enhance full employment. Its primary performance to achieve these goals is to adjust interest rates. When prices rise very quickly and inflation is 2 % higher than the Federal Reserve goal, it raises interest rates, which increases borrowing costs throughout the economy. This leads to the most powerful USD (USD) because it makes the United States a more attractive place for international investors to stop their money. When inflation decreases to less than 2 % or the unemployment rate is very high, the Federal Reserve may reduce interest rates to encourage borrowing, which weighs on the green back.
The Federal Reserve (Fed) holds eight political meetings annually, as the FOOC Open Market Committee (FOMC) evaluates economic conditions and takes monetary policy decisions. FOMC attends twelve officials of the Federal Reserve-the seven members of the Governor, the President of the Federal Reserve in New York, and four regional regional presidents, the remaining regional regional, who serve for one year on a roundabout.
In extreme situations, the Federal Reserve may resort to a policy called quantitative mitigation (QE). QE is the process that the Federal Reserve increases significantly from the flow of credit in a suspended financial system. It is a non -standard policy scale used during crises or when inflation is very low. The Federal Reserve’s favorite federal weapon was during the great financial crisis in 2008. It includes the printing of the Federal Reserve more than dollars and their use to buy high -quality bonds from financial institutions. QE usually weakens the US dollar.
The quantitative tightening (QT) is the reverse process of QE, as the Federal Reserve stops buying bonds from financial institutions and the manager does not re -invest from mature bonds, to buy new bonds. It is usually positive for the value of the US dollar.
Economic indicator
Non -agricultural salary statements
The issuance of non -agricultural salary statements provides the number of new jobs created in the United States during the previous month in all non -agricultural companies; It is released by American work statistics office (BLS). Monthly changes in salary statements can be very volatile. The number is also subject to strong reviews, which can also lead to volatility in the Forex plate. In general, high reading is seen as a bullish country for the US dollar (USD), while low reading is considered declining, although previous months and unemployment rates are related to the main number. Therefore, the market reaction depends on how the market evaluates all the data in the BLS report as a whole.
