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February 26, 2021
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Dollar index plummets to two-month lows after Powell insists Fed stabilizes low interest rates
The dollar index, which measures the movement of the dollar against the six main currencies of the money basket. It plunged to the lowest level since January. Federal Reserve Chairman Jerome Powell said the Fed will continue to keep interest rates low.
As of 12.18am EST on Thursday (February 25), the dollar was up 0.29% to 106.17 yen, while the euro was up 0.89% to 129.91 yen and recovered 0.59%. at $ 1,224. The dollar index was down 0.41% to 89.80.
Mr. Powell said that inflation may take more than three years to reach the Fed’s target level. This signaled that the Fed will keep interest rates low for a long time.
“The Fed previously stated that there would be no rate hike until inflation rebounded above the Fed’s 2% target, which we believe we can do. It could take more than three years, ”Powell said in a semi-annual statement on monetary policy and the state of the economy before the House Financial Services Committee yesterday.
Powell also said: Inflation remains below the Fed’s 2% target level and the economic outlook remains uncertain.
Investors are watching the progress of the US economic stimulus package. The Speaker of the US House of Representatives, Nancy Pelosi, said the House of Representatives would approve the stimulus package of $ 1.9 trillion by tomorrow. The Senate will give its approval before March 15, the day on which measures to help the unemployed affected by COVID-19 expire.
