The Federal Reserve has stopped raising interest rates, according to the market, and the dollar was stable on Wednesday as a result. A core reading of U.S. producer prices revealed that underlying inflation continued to decline in September. The market later hardly responded to the minutes of the Fed's policy meeting from last month, which …
The Federal Reserve has stopped raising interest rates, according to the market, and the dollar was stable on Wednesday as a result. A core reading of U.S. producer prices revealed that underlying inflation continued to decline in September. The market later hardly responded to the minutes of the Fed’s policy meeting from last month, which indicated the Fed policymakers’ cautious tone as they discussed whether additional rate hikes were necessary due to uncertainties about the direction of the U.S. economy. According to Dallas Fed President Lorie Logan and Fed Governor Christopher Waller, rising Treasury yields in recent months may be doing some of the U.S. central bank’s work for it and averting the need for an immediate rate increase. Karl Schamotta, chief market strategist at Corpay in Toronto, stated that the doves had managed to escape their cages but were not yet fully airborne. “On balance, the minutes show officials turning far more concerned about downside risks to the U.S. economy – but also expressing humility in the face of deeply confusing and often contradictory signals in the data,” he stated. A two-week low of 105.550 was reached by the dollar index, which compares the value of the dollar to six other currencies. In contrast, the euro surged to its highest level since September 25 at $1.0634. The producer price index (PPI), which excludes food, energy, and trade services, up 0.2% last month, which is the same increase as in August. Core PPI rose 2.8% during the past 12 months, which is smaller than the 2.9% increase in August.
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