News & AnalysisCareer
Trading
Explore a wide range of markets with competitive pricing, deep liquidity, and advanced trading tools.
Learn More 
Platform
Trade seamlessly with TMGM's powerful platform, built for speed, precision, and a superior trading experience.
Learn More Trading Platform
Trading Tools
Academy
Learn the fundamentals of trading with beginner-friendly resources, including guides, webinars, and market insights.
Learn More News & Analysis
Get real-time market updates and expert analysis to stay ahead of trading opportunities
Learn More News & Analysis
About
Learn what sets TMGM apart — our global presence, regulatory strength, and commitment to innovation in trading.
Learn More Why Choose TMGM
Sponsorship
CPI points to persistent US inflation pressures, Fed’s Bowman warns
CPI figures point to potentially persistent inflation pressures, according to Federal Reserve (Fed) Governor Michelle Bowman, who said that “CPI data suggests inflation pressures may persist.” She also stressed that “bringing inflation down remains a priority,” in her remarks.
Speaking at the Council on Foreign Relations, Bowman described a pick-up in economic growth and an improved labour market that is not contributing to inflation. She also characterised longer-term inflation expectations as “very well anchored.”
Bowman Highlights Further Work on Inflation:
With inflation proving persistent and labour conditions strengthening, further work appears necessary.
As financial conditions have tightened, the Fed must assess the costs of further policy tightening.
Reducing inflation continues to be a priority.
Energy prices and AI-related demand likely drove a 3.3% rise in core PCE in October.
As shocks fade, core PCE is forecast to approach 2% next year.
This year has seen economic growth gather pace.
Inflation pressures may endure, judging by the CPI figures.
Financial stability risks are a focus if AI returns disappoint.
Despite improving, the labour market is not tight and is not contributing to inflation.
External funding is playing a growing role in financing AI development.
Expectations for longer-term inflation remain firmly anchored.
While inflation expectations are an important data point, they do not necessarily determine my thinking.
Before I could be confident that inflation will decline next year, I would need to see risks relating to AI and the Middle East ease.
Data on AI debt counterparties is being sought by the Fed.
Maintaining open communication with the Treasury is critically important.
I do not believe AI will deprive the US economy of jobs.
Alongside raising worker productivity, AI will generate new jobs and remove those that are less necessary.
Through its ongoing cybersecurity examinations of banks, the Fed has observed considerable attention to finding and patching vulnerabilities.
US Dollar Posts Its Strongest Gain Against the Australian Dollar Today
Of the major currencies listed, the Australian Dollar saw the largest gain by the US Dollar today. The table below sets out the US Dollar’s (USD) percentage changes against those currencies.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.51% | 0.73% | 0.52% | 0.48% | 0.87% | 0.51% | 0.72% | |
| EUR | -0.51% | 0.21% | 0.02% | -0.03% | 0.35% | 0.01% | 0.21% | |
| GBP | -0.73% | -0.21% | -0.23% | -0.25% | 0.14% | -0.21% | 0.00% | |
| JPY | -0.52% | -0.02% | 0.23% | -0.03% | 0.35% | 0.00% | 0.20% | |
| CAD | -0.48% | 0.03% | 0.25% | 0.03% | 0.39% | 0.03% | 0.24% | |
| AUD | -0.87% | -0.35% | -0.14% | -0.35% | -0.39% | -0.35% | -0.14% | |
| NZD | -0.51% | -0.01% | 0.21% | -0.00% | -0.03% | 0.35% | 0.20% | |
| CHF | -0.72% | -0.21% | -0.00% | -0.20% | -0.24% | 0.14% | -0.20% |
Percentage movements between the major currencies are displayed in the heat map. Select the base currency in the left-hand column and the quote currency in the top row. Selecting the US Dollar on the left and following its row across to the Japanese Yen, for instance, gives the percentage change for USD (base)/JPY (quote) in the corresponding cell.
Fed Policy and the US Dollar Explained
The Federal Reserve (Fed) sets US monetary policy with a dual mandate of maintaining stable prices and promoting full employment. Adjustments to interest rates are its main means of pursuing these objectives. If prices climb too rapidly and inflation exceeds the Fed’s 2% target, the central bank raises interest rates. Borrowing then becomes more expensive across the economy, while the US becomes a more attractive destination for international investment, strengthening the US Dollar (USD). Conversely, inflation below 2% or an excessively high unemployment rate may prompt the Fed to cut interest rates. By encouraging borrowing, such cuts put pressure on the Greenback.
At the Federal Reserve’s (Fed) eight annual policy meetings, the Federal Open Market Committee (FOMC) reviews the economy and determines monetary policy. Twelve Fed officials take part: all seven members of the Board of Governors, the president of the Federal Reserve Bank of New York and four of the other eleven regional Reserve Bank presidents. These four presidents rotate through one-year terms.
When conditions are extreme, the Federal Reserve may turn to Quantitative Easing (QE) to substantially expand the flow of credit through a stalled financial system. This unconventional policy is deployed in crises or periods of extremely low inflation, and was the Fed’s preferred response during the Great Financial Crisis in 2008. Under QE, the Fed prints additional Dollars to purchase high-grade bonds from financial institutions. The US Dollar usually weakens as a result.
Usually supportive of the US Dollar’s value, quantitative tightening (QT) reverses QE. The Federal Reserve ceases bond purchases from financial institutions and, when bonds in its portfolio mature, does not use the repaid principal to buy new bonds.
POPULAR ARTICLES
1China: De-dollarisation and US asset exposure come into focus – DBS2US Dollar holds firm with support from the yield curve – ING3USD/CHF Price Forecast: Strong bullish momentum lifts pair to highs near 0.83004Japanese Yen: Domestic flows suggest support over the medium term – MUFG5Silver price today: FXStreet data show silver moving higher6EUR/USD: Support stays intact while upside remains capped – ING7Fed policy: Markets assess prospects of a larger December rate rise – BBH8British Pound stays near one-week low with 1.3300 in focus as Fed hike bets support USD9Silver Price Forecast: XAG/USD jumps to almost $53 even as US bond yields climb
Connect With Us
Contacts
Phone: +61 2 8036 8388
Fax: +61 2 8036 8388
Email: support@tmgm.com
The information provided on this website is of a general nature only and does not constitute personal financial advice. Before acting on any information on this website, you should consider the suitability of the information in relation to your objectives, financial situation and needs. Investing in CFDs and FX Margin Contracts carries significant risks and is not suitable for all investors. You may lose more than your initial deposit. You do not own, or have, any interest in the underlying asset. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. It is important that you read and consider the disclosure document before you acquire any product listed on the website. The information and advertisements offered on this website are not intended for use by any person in any country or jurisdiction where such use would be contrary to local laws and regulations. The Products and Services offered on this website are not intended for residents of the United States, Malaysia and Thailand.
TMGM is authorized and regulated in various jurisdictions.
Trademax Australia Limited, trading as TMGM, is regulated by the Australian Securities and Investments Commission (ASIC), AFSL no. 436416 and is located at Level 28, One International Tower, 100 Barangaroo Avenue, 2000 Sydney, NSW Australia.
Email: support@tmgm.com.au
Trademax Global Limited, trading as TMGM, is authorized and regulated by the Vanuatu Financial Services Commission (VFSC), registration number 40356 and registered at 1276, Kumul Highway, Port Vila, Vanuatu, Republic of Vanuatu.
Email: support@tmgm.com
Trademax Global Markets (SE) Limited, trading as TMGM, is authorized and regulated by the Financial Services Authority (FSA) of Seychelles, with license number SD224. The company is registered at Office No 13, Providence Estate ABIS Centre, Mahe, Seychelles.
Email: support@tmgm.com
Trademax Global Markets (International) Pty Ltd, trading as TMGM, is authorized and regulated by the Financial Services Commission, Mauritius (FSC) with license no. GB22201012, and registered at 33, Edith Cavell Street C/o IQ EQ Fund Services (Mauritius) Ltd Port Louis, 11324 Mauritius.
Email: support@tmgm.com
Copyright © TMGM. All rights reserved