Dollar Index stays near 99.50, showing weakness due to the Fed’s cautious approach
The US Dollar Index (DXY), which tracks the USD’s performance against six major currencies, held steady around 99.60 during Asian trading on Friday, following three days of losses. Yet, there’s a chance the dollar might decline further as the likelihood of a Federal Reserve interest rate cut in December grows. Market participants are also anticipating […]
The Fed’s Tariff Research Completely Changed the Inflation Narrative
San Francisco Fed Challenges Common Tariff Beliefs For a long time, economists and the media have warned about the impacts of customs duties, particularly that they increase prices. This has been a key point in lawsuits against President Donald Trump’s trade policies. The common understanding is that higher tariffs result in higher costs for consumers […]
The Week When the Fed’s Research Discredited Its Preferred Tariff Idea
Chicago Boycotts America Amid Economic Turmoil Happy Friday! This is your weekly wrap-up, reflecting on a week filled with economic news ranging from institutional setbacks to market challenges. The Federal Reserve has revealed that its choice to keep interest rates steady is based on a significant theoretical misunderstanding. Italian pasta manufacturers have indicated that tariffs […]
EUR/USD remains steady as robust ISM and ADP figures support the Fed’s careful approach
The euro (EUR) experienced a slight decline against the US dollar (USD) on Wednesday, remaining close to its three-month lows as the dollar continues to gain strength from positive US economic news. As of now, the EUR/USD pair is around 1.1477, not showing much change even with a busy day for US economic reports. The […]
The Fed’s Internal Struggle About Tariffs, Inflation, and Employment
Faults at the Fed: Disputes over tariffs, labor, and the forthcoming rate cut Recently, we examined how the ongoing debate regarding rate cuts has unsettled long-standing alliances within the Federal Reserve. Today, let’s dive into the sources of division and its implications for the market. The Fed’s unusual divisions Divisions within the Fed now extend […]
The Fed’s Unusual New Divisions
Why inflation hawks and doves no longer conform to party lines An unexpected ally in Monday’s Federal Reserve discussion emerged: Governor Lisa Cook, the official Donald Trump sought to remove this summer. Cook, appointed by Biden and currently suing Trump over his removal attempt, delivered remarks suggesting that risks to employment are more significant than […]
Bitcoin ETFs in the US Declined by $946 Million Following Fed’s Aggressive Stance
Simply put Last week, U.S. Bitcoin ETFs saw outflows of $946 million, with the iShares Bitcoin Trust losing $400 million. The newly launched Solana ETF gained $421 million in investments from a U.S.-based fund. Total withdrawals from digital asset funds reached $360 million, as investors reacted to cautious comments from U.S. central bank Chairman Jerome […]
USD/CAD stays steady above 1.4000 as the Fed’s policy outlook remains careful
USD/CAD Exchange Rate Stability The USD/CAD exchange rate is holding steady after a couple of days of gains, currently around 1.4010 during Asian trading hours on Monday. The pair has faced challenges as the Canadian dollar (CAD) gains strength, primarily driven by rising oil prices. It’s worth mentioning that Canada is the main crude oil […]
Implications of the Fed’s recent rate cut for your mortgage
The recent interest rate cut by the Federal Reserve is not going to immediately lower mortgage payments for homeowners. However, it may pave the way for more affordable borrowing, as mortgage rates are expected to drop to their lowest levels in over a year, according to Freddie Mac. On Wednesday, the Fed lowered its key […]
The Fed’s Inflation Predictions Are the Only Thing That Isn’t Stabilized
The Boston Fed’s Unusual Inflation Theory The Federal Reserve has consistently maintained that keeping inflation expectations steady is crucial for controlling actual inflation. This theory appears straightforward—essentially, if the public doesn’t anticipate soaring inflation, it’s less likely that inflation will rise significantly. However, a recent study from researchers at the Boston Fed suggests that these […]