After holding rates a 2.00%, the Fed commented on rising inflation risks and that growth risks have “diminished somewhat.” Basically, in my opinion the Fed is trying to stall for now to see if either inflation will come down or if the rate cuts will help boost growth. Until the Fed actually hikes rates to fight inflation, I believe they will continue to “jawbone” as they know that this may be their only weapon on keeping inflation in check and keeping growth risks steady. But long can this last?
Inflation rises and wages aren’t keeping up. Job growth, housing, and consumer confidence is hurting. In my opinion, I think the the Fed will opt to save the average joe by keeping rates steady, possibly until the end of the year and keeping me USD bearish for now.
Good luck and good trading!