The dollar hit a seven-week high against the yen and a three-month peak versus the Swiss franc
The dollar rose in seven of the last eight sessions against the yen, while touching the day’s peaks versus the euro.In cutting interest rates by 25 basis points for the second time this year, the Fed gave a nod to ongoing global risks and “weakened” business investment and exports.
But new projections showed policymakers at the median expected rates to stay within the new range through 2020. However, in a sign of ongoing divisions within the Fed, seven of 17 policymakers projected one more quarter-point rate cut in 2019.“It is perhaps a little more hawkish than what the market was hoping for. I think it’s an acknowledgement that there is a range of opinion within the policymaking apparatus here,” said Tim Horan, chief investment officer, at Chilton Trust in New York.
“If you look at our own U.S. numbers, what stands out is that inflation has been moving up and that’s slightly at odds with the stronger dollar that we’ve had.”
In response to the Fed’s action, President Donald Trump blasted the Fed, saying the U.S. central bank and its Chair, Jerome Powell, had “No ‘guts,’ no sense, no vision!”