The US dollar surged on Thursday after the Federal Reserve ruled out immediate rate cuts, despite slowing economic growth and persistent inflation. The Fed’s decision to hold rates steady at 4.25% to 4.5% has bolstered confidence in the greenback, making it a preferred choice for investors seeking stability.
Fed Chair Jerome Powell emphasized the central bank’s commitment to achieving price stability before considering rate cuts. “We need to see sustained progress on inflation before easing monetary policy,” Powell said during a press conference.
The dollar index, which measures the currency against a basket of major peers, rose 0.8% following the announcement. Analysts predict the dollar will remain strong in the near term, as other central banks consider rate cuts to stimulate their economies.
