The dollar was on the defensive on Friday after Federal Reserve officials bolstered expectations of an aggressive rate cut this month to address weakening price pressures. At a central banking conference on Thursday, New York Fed president John Williams argued for pre-emptive measures to avoid having to deal with too low inflation and interest rates. On the week, the dollar is down 0.4 per cent versus the yen and almost flat on the euro. The greenback fell broadly on Thursday after Williams’ remarks bolstered bets that the Fed would cut interest rates by 50 basis points, rather than 25 basis points. When adjusted for inflation, the neutral rate is near the Fed’s current policy rate, which is in a range of 2.25-2.50 per cent.

Source: The Irish Times July 19, 2019 06:33 UTC