DXY: US Dollar Steady Ahead of Major Fed Choice

It’s Fed Day and all eyes will be on Jay Powell who will update on the Federal Reserve’s rate decision.

• The Fed’s decision is coming today. Traders, investors, and their moms will be watching to find out what Jay Powell and his clique of central bankers have decided on the interest-rate front. Heads up: it’s not an easy choice and there isn’t an easy answer.
• Three weeks ago, when the Fed last met, officials were planning to raise rates by a moderate 25 bps. Since then, latest inflation figures and jobs data argue in favor of the rate hike as a way to continue the ongoing tightening and gradually bring price pressures down.
• Recent bank turmoil, however, is a major reason for many to expect that the Federal Reserve will prudently pause its rate hike to allow the market to catch its breath and not be hammered by consistent rate bumps. Uncertainty is high and the dollar will likely absorb the news rather wildly.