Forex
The US dollar bounced back from a six-month low, after the Federal Reserve announced an interest rate hike of 0.5%. The hike itself had been anticipated and already priced-in by the markets, but the message conveyed by Jerome Powell after the announcement caused some surprise amongst investors. The chairman of the Fed reiterated the central bank’s intention to control inflation, indicating that rates are expected to top 5% when they peak. The main takeaway from Powell’s message was that, despite signs of softening in inflation and looming recession risks, the Fed has no intention to pivot. Rates will continue to rise in 2023, remaining elevated for longer than previously expected
