The dollar consolidated its gains on Wednesday, but the dollar hurt slightly as unemployment claims failed to gain momentum. During US trading, Federal Reserve Chairman Jerome Powell was cautious about the Fed's next move, which understandably put selling pressure on the dollar.
It is well known that monetary policy in the United States is shaped by the Federal Reserve System (FRB). The Federal Reserve has two missions: stabilizing prices and promoting employment. The most important means of achieving these goals is interest rate regulation. If prices rise too quickly and inflation exceeds the Fed's 2% target, interest rates will rise, raising borrowing costs for the economy as a whole. This leads to a rise in the US dollar (USD) as the US becomes a more attractive place for international investors to park their funds.
It is well known that monetary policy in the United States is shaped by the Federal Reserve System (FRB). The Federal Reserve has two missions: stabilizing prices and promoting employment. The most important means of achieving these goals is interest rate regulation. If prices rise too quickly and inflation exceeds the Fed's 2% target, interest rates will rise, raising borrowing costs for the economy as a whole. This leads to a rise in the US dollar (USD) as the US becomes a more attractive place for international investors to park their funds.
