Dollar Stabilizes After Hawkish Fed Comments
The US Dollar (USD) has stabilized after post-Fed volatility on Wednesday. Following the Federal Reserve's decision to leave its policy rate unchanged, the USD initially weakened but rebounded in the early hours of Thursday, staying around 101.00 and rising about 0.2% on the day.
Although the Fed's decision was as expected, three officials dissented in favor of a quarter-point rate hike. However, Fed Chair Kevin Warsh adopted a hawkish stance in the post-meeting press conference, helping the USD regain ground.
Warsh emphasized that the 2% inflation target remains the sole focus for the committee and that they will not hesitate to act if necessary. This resolute commitment has reinforced expectations of a prolonged restrictive monetary policy stance, supporting the Dollar on a relative basis.