Banda Asia: The Federal Reserve remains inactive as scheduled The US dollar index rebounded and closed higher

On Thursday morning, the Federal Reserve ended its two-day monetary policy meeting and announced that it would maintain the target range for the federal funds rate at3.5%to3.75%Between them, it meets the general market expectations. The statement from the Federal Open Market Committee stated that in this resolution, two members of the Federal Reserve, Stephen Milan and Christopher Waller, voted against the rate cut as they were inclined towards it25One basis point. The statement reads that existing indicators show that US economic activity is still expanding at a steady pace, employment growth remains slow, the unemployment rate has shown some signs of stability, and inflation is still at a relatively high level.FOMCReiterate that the committee strives to achieve full employment and2%The inflation target. The statement acknowledges that there is a high degree of uncertainty in the current economic outlook,FOMCPay close attention to the risks faced by its "dual mission" (employment and inflation). When evaluating the appropriate stance of monetary policy,FOMCWe will continue to monitor the impact of new information on the economic outlook. If there are risks that may hinder the achievement of the goals, the committee will be prepared to adjust the monetary policy stance if necessary. The statement added that,FOMCThe assessment will integrate a wide range of information, including labor market conditions, inflation pressures and expectations, as well as developments in the financial and international situation. Powell stated at a subsequent press conference that since the last interest rate meeting, the outlook for economic activity has "significantly improved," and the risks of rising inflation and falling employment have "weakened. Powell pointed out that the current policy stance is "appropriate" and can help promote the dual goals of inflation and employment. He emphasized that policies are not predetermined paths, and future decisions will be made "one by one in each meeting" and "let data point us in the right direction". He revealed that the decision to maintain interest rates has received widespread support from committee members. Powell believes that the US economy has a "solid foundation" and is benefiting from AI related spending. The labor market may be stabilizing, while there are signs of further cooling. In terms of inflation, he said that the performance is "roughly in line with expectations", and the trend of slowing down inflation in the service industry seems to continue, but inflation "is still slightly higher than the target level". He specifically mentioned,12Monthly Overall CorePCEInflation may rise3%The part of inflation exceeding expectations mainly comes from the "one-time price increase" caused by tariffs, and the core after deducting this impactPCEslightly higher than2%He expects the impact of tariffs on goods to peak this year and then fall back. The data that needs to be monitored today is the Eurozone1Monthly Economic Prosperity Index, Eurozone1Monthly Consumer Confidence Index Final Value, United States11Monthly trade account, as of the United States1month24Number of initial claims for unemployment benefits in the current week, United States11Monthly rate of factory orders and the United States11Monthly wholesale inventory monthly rate final value. The US dollar index fluctuated upwards yesterday, with a slight increase in daily trading. The current exchange rate is trading at96.30Nearby. In addition to providing some support for the exchange rate through short covering, the Federal Reserve has kept interest rates unchanged as scheduled, and the hawkish tone of Federal Reserve Chairman Powell's speech is also an important factor supporting the rebound of the exchange rate. In addition, the remarks made by US Treasury Secretary Vicente downplaying the impact of US President Trump's recent statement that he is not concerned about the weakening of the US dollar have also provided some support for the exchange rate. Today's Focus96.80Nearby pressure situation, supported below95.80Nearby. euro/The US dollar and Euro fluctuated and fell yesterday, but remained cautious1.1900Gateway, spot exchange rate trading at1.1960Nearby. In addition to profit taking exerting a certain pressure on the exchange rate, the rise of the US dollar index supported by favorable factors such as the Federal Reserve holding its position as scheduled is also an important factor in pressuring the euro to weaken. In addition, dovish remarks made by officials of the European Central Bank have also exerted some pressure on the exchange rate. Today's Focus1.2050Nearby pressure situation, supported below1.1850Nearby. pound sterling/The US dollar and British pound fluctuated downwards yesterday, with a slight decline in the daily chart. The current exchange rate is trading at1.3800Nearby. In addition to profit taking exerting a certain pressure on the exchange rate, the main reason for the pressure on the pound to fall is the rebound of the US dollar index supported by the Federal Reserve maintaining interest rates as scheduled and optimistic statements from Fed officials. However, investors' expectation that the Bank of England is not in a hurry to cut interest rates has limited the downward space of the exchange rate. Today's Focus1.3900Nearby pressure situation, supported below1.3700Near.