Fed’s Bullard: Economy may improve faster than expected, but will keep current policy

Dhwani Mehta FXStreet

The US economy may recover quickly from coronavirus pandemic but that would not call for a change in the Federal Reserve (Fed) bank’s current policy, said St Louis Fed President James Bullard while speaking in a Wall Street Journal (WSJ) interview this Tuesday.

He added: “I like the monetary policy right now.”

Further comments

“Don't think the Fed has to do anything differently now or going into next year.”

“Economy may improve faster than markets think, but Fed will keep the current policy.”

“Hopeful that policy is right to spur a faster recovery.”

“More fiscal stimulus will make forecasts "that much rosier".

Market reaction

The US dollar paid little attention to the comments from Fed’s Bullard, as the dollar index remained in the bearish consolidation phase around 93.50 levels. The optimism over the US fiscal stimulus deal continues to weigh on the safe-haven dollar.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD recovers further from one-month low set on Friday, eyes mid-1.1800s on weaker USD

The EUR/USD pair is seen building on Friday's late recovery from the 1.1750-1.1740 region, or a nearly one-month trough, and gaining some follow-through positive traction at the start of a new week. The momentum lifts spot prices to the 1.1835 area during the Asian session and is sponsored by a broadly weaker US Dollar.

GBP/USD gathers strength above 1.3500 amid tariff confusion

The GBP/USD pair gains traction to around 1.3520 during the early Asian session on Monday. The US Dollar faces some selling pressure against the Cable as tariff uncertainty lingers. Traders will take more cues from the US Producer Price Index report for January, which will be published later on Friday.

Gold eyes a daily closing above key 61.8% Fibo resistance

Gold is adding over 1% early Monday, after having gained 2% on Friday. The bright metal scales key technical hurdles, as buyers stay strong amid renewed tariffs and economic uncertainty alongside looming US-Iran geopolitical tensions.

Top Crypto Losers: Zcash, Pump.fun, and LayerZero extended losses as Bitcoin loses $65,000

The cryptocurrency market starts the week in panic mode, with altcoins Zcash, Pump.fun, and LayerZero. Bitcoin falls below $65,000 as the US President Donald Trump regroups amid renewed trade policy risks.

Liberation day take two, the tariff machine just changed gears

Let me caveat this from the outset. What we are watching is first-order mechanics, not the grand macro endgame. This is the market’s immediate reflex to a 15% Trump tariff levy dressed up as judicial drama. The Supreme Court blocked Trump tarrif hammer. The White House came back with a scalpel.