Bloomberg/Jeanna Smialek and Matthew Boesler/3-20-2019
“It was very dovish,’’ said Stephen Stanley, chief economist at Amherst Pierpont Securities LLC. “It suggests that the Fed has jumped to the conclusion that the weakening we have seen since the start of the year will be more fundamental and more persistent, rather than being temporary crosscurrents.”
USAGOLD note: Most of the comments in this article fall in line with our own in yesterday’s Afternoon Update. We see the Fed’s moves yesterday as ultra-dovish. The only way it could have more dovish is if the Fed had announced a surprise rate cut or the reintroduction of quantitative easing. We would be surprised if there weren’t a strong reaction in forex markets, i.e., a weaker dollar as an immediate result to the Fed’s maneuvering yesterday – a turn of events that would be happily received at the White House where a weaker dollar has been on the agenda for some time now.
