- Analytics
- News and Tools
- Market News
- USD to strengthen gradually this year as the Fed moves towards policy normalisation – HSBC
USD to strengthen gradually this year as the Fed moves towards policy normalisation – HSBC
The FOMC largely delivered on expectations, leaving its policy rate steady, but signalling a likely rate hike in March. Federal Reserve (Fed) Chair Jerome Powell’s hawkish comments and the Fed’s policy normalisation pivot should support the USD, in the view of economists at HSBC.
Fed Chair Powell made some hawkish comments, probably supporting the USD
“Powell suggested that rates could be raised faster than in the prior tightening cycle, with every meeting potentially live. He did not rule out the possibility of a potential 50bp hike at some stage in the cycle. The Fed Chair also leaned a bit more heavily on the upside risks to inflation and suggested further upward revisions to Fed inflation forecasts were likely to come in the March projections.”
“Fed Chair Powell also reiterated that balance sheet reduction would likely occur faster than during the last tightening cycle.”
“We have been looking for a continuation of USD strength as the Fed moves towards policy normalisation, and this January meeting should provide a bit more impetus on that front.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
