The dollar took a huge nose dive few minutes ago as The Federal Open Markets Committee’s expectations for core inflation moved higher, with the committee now looking for a 2.2% gain this year as measured by personal consumption expenditures.
GBPUSD, AUDUSD and EURUSD surged up over 100 points within 3 hours after the announcements. Other announcements from the federal reserve includes:
- No expected interest rate hikes till 2023
- Forecasted drop in unemployment from current 6.2% to 4.5%
- Expected GDP for 2021 to increase by 6.5%
- The Fed will continue to purchase at least $80 Billion of treasuries per month and $40 billion of mortgages per month to keep long term rates down.
Victor Nnadi is an Independent Economics Researcher and a Securities Trader.
