By Giles Coghlan, Chief Currency Analyst at HYCM
The Federal Reserve cut rates as expected by 25bps and indicated that it would be taking a more data dependent approach going forward. In the press conference afterwards Jerome Powell said that the cut was an ‘insurance’ against ongoing risks and monetary policy likely to remain appropriate; policy is not on a pre-set course. Powell did say that the Fed is not thinking about rising interest rates now. So, taken as a whole it is a moderately hawkish rate cut. The Fed will probably be data dependent from here on in, so US economic data will be in focus. See the statement here and how it has changed compared to last time.
