Fed's Evans: Fed has more to discuss in terms of further quantitative easing

Eren Sengezer FXStreet

Regulators need to ensure the safety of the financial sector so the Federal Reserve can set rates based on the economy rather than financial stability concerns Chicago Federal Reserve Bank President Chales Evans said on Tuesday, as reported by Reuters.

Additional takeaways

"Fed has more to discuss in terms of further quantitative easing."

"Yield curve control would likely be a statement about interest rates for perhaps six months or a year."

"At the moment 10-year treasury rates are quite low, I don't see any issues about that."

"Fed needs to have more discussion about averaging 2% inflation but there is no explicit formula."

Market reaction

US Dollar Index continues to push higher and was last seen gaining 0.39% on the day at 93.92.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD remains offered below 1.1600, seems vulnerable near multi-month low

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1530 region, or the lowest level since November 2025, and lower for the third consecutive day on Wednesday. Spot prices slide back below the 1.1600 mark during the Asian session and seem vulnerable to slide further.

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold rebounds ahead of US ADP, will it last?

Gold finds renewed Asian bids and retests $5,230 early Wednesday after the heavy sell-off on Tuesday. The US Dollar stands tall amid escalating Middle East tensions and reduced dovish Fed expectations. Gold defends $5,000 or 50% Fibo level after facing rejection at the 78.6% Fibo resistance at $5,342 amid bullish RSI.