Brief by Shorts91 Newsdesk / 04:46pm on 23 Aug 2024,Friday International
Federal Reserve Chair Jay Powell declared that "the time has come" for an interest rate cut, leading to a surge in the pound's value against the US dollar. While Powell did not specify the timing or size of the rate cuts, financial markets anticipate a quarter-point reduction at the Fed's next meeting in mid-September. This would be the first rate cut since the Fed's hiking cycle began in 2022. The announcement pushed the pound above $1.32, benefiting UK holidaymakers and reducing the cost of UK government debt. Powell emphasized that the pace of cuts will depend on incoming data.
