Forex
US Dollar Surges on Federal Reserve Rate Hike
The US dollar has strengthened significantly after the Federal Reserve raised its federal funds rate for the first time since 2023.
This move is seen as a start of a new monetary-tightening cycle, rather than just a single rate hike, according to Kevin Warsh's comments.
The resilient economy, persistent inflationary pressures, and complex geopolitical environment were key factors behind the FOMC's unanimous decision to raise rates.
The derivatives market now prices in three more Fed hikes over the next 12 months, compared to four for the ECB and five for the Bank of England.