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As the Fed was meeting to consider cutting interest rates, it lost control of the very benchmark rate that it manages.Market Insiderread more
The interest on excess reserves now stands at 1.8%, a 30 basis point cut compared with the 25 basis point reduction for the benchmark funds rate.The Fedread more
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Federal Reserve Chairman Jerome Powell pledged that the central bank would engage in a "sequence" of interest rate cuts if conditions warrant, but he doesn't see that as...The Fedread more
The Federal Reserve cut rates Wednesday by 25 basis points to a range of 1.75% to 2.00%.The Fedread more
For consumers, lower rates do mean cheaper loans, which can impact your mortgage, home equity loan, credit card, student loan tab and car payment. n the flip side, you'll earn...Personal Financeread more
The U.S. dollar gained on Wednesday as data supported the view that the U.S. economy is in strong shape and as concerns about Italy's budget negotiations continued to weigh on the euro.
Private employers added 230,000 jobs in September, the most since February, according to the ADP National Employment Report on Wednesday. That was more than economists expectations of 185,000 jobs.
The data is consistent with the Federal Reserves message last week and Fed Chairman Jerome Powell's comments on Tuesday that the U.S. central bank is still very much committed to a gradual path when it comes to rate hikes going forward, said Bipan Rai, head of North American foreign exchange strategy at CIBC Capital Markets in Toronto.
Powell on Tuesday hailed a "remarkably positive outlook" for the U.S. economy that he feels is on the verge of a "historically rare" era of ultra-low unemployment and tame prices.
The Fed last Wednesday raised interest rates as expected and said it foresees another rate hike in December, three more next year and one in 2020. The dollar is outperforming as U.S. growth remains strong while economic data in other large economies including the euro zone has come in below expectations.
One of the reasons we think why the dollar has been so bid in the last several months has been because the U.S. economy has been performing reasonably well, whereas we've seen a material slowdown in terms of data coming out of the euro zone and Japan and other large economies, said Rai.
The euro is also being hurt by uncertainty surrounding Italy's debt, fiscal plans and future ties with Europe, which have unnerved markets and exacerbated tensions with other euro zone leaders. The euro has been testing key technical support at $1.510-$1.508, which was a temporary low set in June.
This must hold on a closing basis for an overall upside bias to remain intact, Karen Jones, an analyst at Commerzbank wrote in a report on Wednesday. A break below this level would be viewed as bearish and likely result in further weakness to around $1.13, said Jones, which was a one-year low reached in August.