Dollar Holds Gains After Fed

2025-10-29 18:22 By Joana Taborda 1 min. read

The dollar index remained around 98.8 on Wednesday after the Fed delivered another 25bps reduction in the fed funds rate as expected, bringing borrowing costs to their lowest level since 2022.

However, two officials dissented, with Governor Miran supporting a deeper half-point cut, while Kansas City Fed President Jeff Schmid argued for holding rates steady.

The Fed also said it will end the reduction of its securities holdings beginning on December 1st.

Meanwhile, investors await a meeting between US President Trump and Chinese President Xi Jinping, expected to finalize a framework that could pause higher US tariffs and China’s rare earth export controls.

The greenback strengthened mainly against the pound, the Swiss franc, and the yen.



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