President of the Federal Reserve Bank of San Francisco, Mary Daly, said late Sunday that rising uncertainty among businesses could dampen demand in the US economy but does not justify a change in interest rates.
Market reaction
At the time of press, the US Dollar Index (DXY) was down 0.13% on the day at 103.70.
Fed FAQs
Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, whic
