#USD Central bank of USA reduced another -0.25% of its interest rate and reached 2%. The federal members were not convergent in the meeting and some were against any changes and some other were even for a -0.5% reduction.
The Central Bank of America’s CEO claimed that reserve federal may again tend to buy bonds. The reserved federal balance sheet is currently 17.6% of US GDP which is so low in comparison with Europe’s ECB being 40.49%.
After interest rate reduction announcement, USD has raised +0.3%. it seems that the market was expecting a stronger expansion policy and has been disappointed. Moreover, there is no perspective of continuous reduction.
Fed made modest reduction in interest rates by 25bps, stopped far short of dramatic action Trump has demanded for months. In extremely unusual move, Trump blasted Fed’s announcement within minutes, targeting Powell. “No ‘guts,’ no sense, no vision! A terrible communicator.”