Federal Reserve Bank of San Francisco President Mary Daly mentioned on Tuesday that we must assess the duration for maintaining rates at their current level. She added that inflation is gradually decreasing, though the process is erratic and gradual. Daly noted that while there's no immediate need to modify the rate; maintaining the status quo is the appropriate policy at present. She also argued that progress is being made, but there's a noticeable supply and demand disparity in the housing market. The economy is showing signs of improvement, and while there's a trajectory where interest rates begin to adjust this year, we haven't reached that point yet.
Extra quotes
“There's a 'real risk' of cutting rates too soon.”
“If we lock inflation in at this level, that's a 'toxic tax'.”
“We want to fully bring inflation back to 2%.”
“3 rate cuts this year is 'reasonable' baseline.”
“Projection of 3 rates cuts is not a promise.”
Market Reaction
The Greenback appears unfazed by today’s set of Fedspeakers and keeps trading on the defensive around the 104.80 zone.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD rises to near 1.1750 due to uncertainty over Fed rates, tariff concerns
EUR/USD appreciates after registering mild losses in the previous session, trading around 1.1730 during the Asian hours on Thursday. The pair appreciates as the US Dollar loses ground following the latest Federal Open Market Committee Meeting Minutes and developments on US tariffs.
Cardano bulls eye for a rally as Bitcoin hits new record highs
Cardano price stabilizes trading at around $0.62 on Thursday after breaking out of a falling wedge pattern the previous day. This bullish breakout comes as Bitcoin reaches new all-time highs, fueling a wave of optimism for ADA and the overall cryptocurrency market.
GBP/USD gathers strength above 1.3600 on softer US Dollar
The GBP/USD pair gains ground around 1.3605 during the Asian trading hours on Thursday. The Greenback softens against the Pound Sterling amid the prospects for more interest rate cuts by the Federal Reserve this year. Traders await the US weekly Initial Jobless Claims data later on Thursday.
Gold price trades with a positive bias above $3,300 but bullish conviction lacking
Gold price ticks higher for the second straight day amid a combination of supporting factors. Trade jitters act as a tailwind for the safe-haven XAU/USD pair on the back of a softer USD. Declining US bond yields and Fed rate cut bets further benefit the non-yielding yellow metal.
New US tariffs target Asia, but some countries stand to gain
President Trump’s new tariffs are higher than expected for most Asian economies. Moreover, most countries will face additional tariff rates on transshipments. The new announcements are silent on Singapore, India and the Philippines, which might stand to benefit from tariff concessions if negotiations progress favourably.
Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.