Dollar rises on talk of cutback in Fed easing by September
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
The dollar advanced against the yen and the euro on Friday as investors resumed pricing in the possibility that the Federal Reserve will begin to pare back its bond-buying program as soon as its September policy meeting.
Fed Governor Jeremy Stein on Friday highlighted September as a possible time when the U.S. central bank will need to consider reducing its 'quantitative easing' economic stimulus progam.
Stein said the Fed's eventual decision to scale back its $85 billion in monthly asset purchases must be based on the overall economic progress since it launched the stimulus, and not be "excessively sensitive" to the most recent economic data.
"Stein's remarks cannot be lightly dismissed and raise risks that some on the Committee may have already essentially decided on September," said Michael Feroli, economist at J.P. Morgan in New York.
"More generally, compared to remarks from Fed officials earlier this week, Stein's speech was less geared toward calming market perceptions of Fed policy and did less to question market pricing of the first rate hike."
read more ...