Fed: Dollar pressure will probably continue

‘Whatever,’ it takes that is the message from the Federal Reserve as it takes stocks from its massive stimulus to mitigate the economic fallout from coronavirus, FXStreet’s analyst Yohay Elam reports.

Key quotes

“The Fed acknowledged the severe economic situation and said it would leave rates at the bottom at least until the economy gets back on track.” 

“The bank seems to pledge unlimited buying and to take markets into consideration, considerably. That should keep equities on the mend.” 

“Jerome Powell, Chairman of the Fed, stressed that the bank will do whatever is needed and that there will likely be a need for more action.” 

“Yet with vast bidding from the bank, markets may prefer other assets rather than hard currency. The dollar's safe-haven status is not playing against it and that factor is more significant than the Fed's money printing.”