Federal Reserve & US Dollar

Ben Bernanke, Chairman of the Federal Reserve has indicated that there will be no immediate monetary stimulus but that the Federal Reserve will consider the use of all its monetary tools at their next meeting in September.

“The Federal Reserve has a range of tools that could be used to provide additional monetary stimulus. We discussed the relative merits and costs of such tools at our August meeting. We will continue to consider those and other pertinent issues, including of course economic and financial developments, at our meeting in September, which has been scheduled for two days (20th-21st September) instead of one to allow a fuller discussion. The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools as appropriate to promote a stronger economic recovery in a context of price stability.” Ben Bernanke, Chairman Federal Reserve.

Currently the Pound trades lower against the US Dollar at 1.6230.