Currency1997

Currency1997

The just-released minutes of the Federal Reserve's September policy meeting show that Fed officials are taking a more cautious stance on the issue of raising interest rates. But most policymakers generally agree that interest rates need to remain high until inflation actually cools. Investors' attention will be focused on the upcoming release of the US consumer...

Currency1997

Dallas Fed President Rory Logan and Fed President Christopher Waller said the rise in U.S. Treasury yields in recent months will help the Fed do some of the work it needs to do to prevent an urgent need for further rate hikes. He reportedly claimed that it was possible. "The pigeons are out of the cage, but they haven't taken flight yet," said Karl Schamotta,...

Currency1997

The dollar became more stable following the release of the US Core Producer Price Index on Wednesday. This indicates that core US inflation was further subdued in September, giving markets reason to expect the Fed to complete its interest rate hike. After that, markets had little reaction to the minutes of last month's Fed policy meeting. Recognizing...

Currency1997

Analysts therefore initially attributed the drop in U.S. yields to Monday's comments from two Fed officials. They said a rise in long-term yields could occur even without further rate hikes as traders seek safe-haven assets in the wake of Hamas attacks on Israel. The Israeli shekel is currently trading near an eight-year low at 3.9550 shekels to the dollar...

Currency1997

Atlanta Fed President Rafael Bostic said there was no need for the U.S. central bank to raise interest rates any further. The benchmark 10-year U.S. Treasury bond fell to an intraday low of 4.618%, from Monday's high of 4.887%. U.S. Treasuries rebounded, with the two-year bond yield hitting its lowest level in a month. This is largely due to increased demand for...

Currency1997

In yesterday's trading, the 10-year Treasury yield fell about 13 basis points to about 4.65% as investors sought safe haven assets. The conflict between Hamas and Israel remains tense, with investors worried about more instability in the near future. Investing said comments from Federal Reserve officials caused investors to underestimate the possibility of further...

Currency1997

Fed member Bostic told the American Bankers Association that even if the Fed raises interest rates to slow the economy while keeping inflation in check, there is no prospect of a recession. Joseph Trevisani, a senior analyst at FX Street in New York, said Bostic's response comes amid the eruption of conflict in the Gaza Strip. Analysts also said the decline in...