{"id":97037,"date":"2025-01-09T11:43:30","date_gmt":"2025-01-09T09:43:30","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=97037"},"modified":"2025-01-09T11:44:16","modified_gmt":"2025-01-09T09:44:16","slug":"fed-to-slow-the-pace-of-policy-easing","status":"publish","type":"post","link":"https:\/\/www.ironfx-cn.com\/pt\/fed-to-slow-the-pace-of-policy-easing\/","title":{"rendered":"Fed to slow the pace of policy easing"},"content":{"rendered":"

The FOMC\u2019s December meeting minutes were released last evening. The minutes showcased that policymakers may be taking into account the incoming administration\u2019s economic policies, as it was stated that \u201cthe effects of potential changes in trade and immigration policy, suggested that the process could take longer than previously anticipated\u201d, implying that the Fed may take a longer path to cutting interest rates. Moreover, it was stated that the Committee was near the point \u201cat which it would be appropriate to slow the pace of policy easing\u201d, which in turn could aid the greenback if that narrative is echoed.US markets will be closed today, as the US will be observing a National Day of Mourning for the death of former US President Carter who passed away recently. In other news, the ADP Employment change figure for December came in lower than expected at 122k versus 139k and lower than the prior figure of 146k. The lower-than-expected figure tends to cast doubt on the narrative of a resilient labour market. Nonetheless, the lower-than-expected figure may have weighed on the dollar. On a monetary level, Fed Waller spoke yesterday and implied that further rate cuts by the Fed may occur. In particular, Fed Governor Waller stated that \u201cthe pace of those cuts\u201d, \u201cwill depend on how much progress we make on inflation while keeping the labour market from weakening\u201d. Moreover, when referring to the potential tariffs that may be imposed by the incoming Trump Administration, the Governor stated that they \u201care unlikely to affect my view of appropriate monetary policy\u201d. Overall, it may appear that Governor Waller\u2019s comments may have been slightly dovish in nature.The FOMC\u2019s December meeting minutes were released last evening. The minutes showcased that policymakers may be taking into account the incoming administration\u2019s economic policies, as it was stated that \u201cthe effects of potential changes in trade and immigration policy, suggested that the process could take longer than previously anticipated\u201d, implying that the Fed may take a longer path to cutting interest rates. Moreover, it was stated that the Committee was near the point \u201cat which it would be appropriate to slow the pace of policy easing\u201d, which in turn could aid the greenback if that narrative is echoed.US markets will be closed today, as the US will be observing a National Day of Mourning for the death of former US President Carter who passed away recently. In other news, the ADP Employment change figure for December came in lower than expected at 122k versus 139k and lower than the prior figure of 146k. The lower-than-expected figure tends to cast doubt on the narrative of a resilient labour market. Nonetheless, the lower-than-expected figure may have weighed on the dollar. On a monetary level, Fed Waller spoke yesterday and implied that further rate cuts by the Fed may occur. In particular, Fed Governor Waller stated that \u201cthe pace of those cuts\u201d, \u201cwill depend on how much progress we make on inflation while keeping the labour market from weakening\u201d. Moreover, when referring to the potential tariffs that may be imposed by the incoming Trump Administration, the Governor stated that they \u201care unlikely to affect my view of appropriate monetary policy\u201d. Overall, it may appear that Governor Waller\u2019s comments may have been slightly dovish in nature.<\/p>\n\n\n\n

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