{"id":152561,"date":"2019-07-31T16:59:58","date_gmt":"2019-07-31T20:59:58","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=152561"},"modified":"2019-07-31T16:59:58","modified_gmt":"2019-07-31T20:59:58","slug":"dollar-blasts-higher-on-feds-insurance-rate-cut","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/07\/dollar-blasts-higher-on-feds-insurance-rate-cut\/","title":{"rendered":"Dollar blasts higher on Fed\u2019s \u201cinsurance\u201d rate cut"},"content":{"rendered":"
July 31, 2019<\/div>
\r\n<\/div><\/div>
\n
By Lukman Otunuga, Research Analyst, ForexTime<\/a><\/strong>
\n<\/span><\/div>\n<\/div>\n
\n
\n
\n
\n

History was\u00a0made today after the Federal Reserve cut interest rates for the first time since the 2008 financial crisis.<\/p>\n

Unfavourable global conditions, persistent US-China trade tensions and muted inflation pressures have forced\u00a0the Fed to cut interest rates by 25 basis points, taking the federal fund’s target range to 2-2.25%. The central bank also decided to conclude its balance sheet reduction in August – two months earlier than previously announced.<\/p>\n

Although the monetary easing was justified by \u201cuncertainties\u201d stemming from weakness in the global economy, the committee expressed optimism\u00a0over the US economy by\u00a0calling\u00a0growth \u201cmoderate\u201d and the labour market \u201cstrong\u201d. Overall, the Fed statement was not as dovish as markets priced for\u00a0and this sentiment is being reflected in the Dollar Index which is blasting above 98.50 as of writing.<\/p>\n

While the Fed also left the door open to future cuts, saying it will \u201cact as appropriate to sustain the expansion\u201d, this\u00a0will\u00a0be contingent on incoming data and US-China trade developments.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n<\/div>\n

\n

\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Lukman Otunuga, Research Analyst, ForexTime History was\u00a0made today after the Federal Reserve cut interest rates for the first time since the 2008 financial crisis. Unfavourable global conditions, persistent US-China trade tensions and muted inflation pressures have forced\u00a0the Fed to cut interest rates by 25 basis points, taking the federal fund’s target range to 2-2.25%. […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-152561","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=152561"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152561\/revisions"}],"predecessor-version":[{"id":152563,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152561\/revisions\/152563"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=152561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=152561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=152561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}