The US dollar gained strength on Thursday after the Federal Reserve signaled it would not rush to cut interest rates, despite slowing economic growth and persistent inflation. The Fed’s decision to hold rates steady at 4.25% to 4.5% has reinforced the dollar’s position as a safe-haven currency.
Fed Chair Jerome Powell reiterated 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.
