FOMC Minutes Caused Decrease of US Dollar

Forex News

The US dollar remains under pressure after the minutes of the latest meeting of the Federal Reserve showed that some politicians are worried about steadily low inflation. Many representatives of the Federal Reserve explained the sudden decline in core inflation by temporary factors, and expect inflation to begin to rise. The forecast, according to which inflation will reach 2% in 2019, remained unchanged.

Minutes of the Fed meeting of October 31-November 1 also showed that the Fed's policymakers expect interest rates to be increased in the short term, which reinforces market expectations for an increase in interest rates in December. Nevertheless, several representatives of the Fed preferred to postpone the rate hike until it is confirmed that the 2% inflation goal will be achieved. They warned that a further increase in rates could lead to inflation being permanently below +2%.