Fed makes statements in favor of US-dollar at yesterday's meeting

Baku. 2 November. REPORT.AZ/ The US Federal Reserve System (Fed) did not change its discount rate as expected at its next meeting on monetary policy from October 31 to November 1. Analytical Group of Report News Agency informs, however, Fed said the US economy is developing "confidently". Notably, at September session, Fed reported that the economy was "progressing" with "moderate steps”.

Fed also noted that although inflation has accelerated in recent months, it has not reached its target of 2%. Although Fed said it would continue to tighten monetary policy, it did not comment on December meeting.

According to Wall Street Journal, the White House has informed Fed about appointment of Jerome Powell as the new head of the Fed by US President Donald Trump.

Notably, Powell is in favor of gradual stiffening of monetary policy.If Powell is elected, the current Fed chief is expected to continue to pursue the policy of Janet Yellen. The name of the new Fed chief is expected to be announced today at 16:00 Baku time. This news is not expected to affect the financial markets seriously. Analytical Group expect US-dollar to continue to strengthen in November. The key currency pair is likely to fall to the 1.13 USD/EUR level. However, as the December session is approaching, the dollar will start to decline again and remain above 1.15 USD/EUR in the first half of 2018.