Federal Reserve Holds Rates Steady Amid Economic Uncertainty

The Federal Reserve is expected to maintain interest rates on Wednesday, according to UniCredit Bank’s Roberto Mialich. This decision may not significantly impact the US dollar’s value. Mialich highlights that Fed Chair Jerome Powell previously stated in a speech last month that they will hold off on rate changes until more clarity on the economic effects of tariffs and inflation is available. The dollar index remains relatively weak, with options markets indicating an increased likelihood of a decline rather than an increase in dollar value. UniCredit Bank predicts continued trading around 1.13 for the euro against the US dollar.