As expected, The US Federal Reserve, kept its discount rate and asset repurchase program. At the end of 2020, there were a lot of rumors in the market that the Federal Reserve may begin to reduce the volume of asset purchases already this year insofar as inflation may become uncontrollable. However, D. Powell dispelled all these rumors. “The economy is far from our targets for unemployment and inflation,” commented the head of the Fed. “The pace of recovery in economic activity and employment has slowed in recent months, and by the way, weakness concentrated in the sectors which are most affected by the pandemic,” according to the statement of the FOMC following the meeting. “Support from fiscal policy will help weather the slowdown and limit long-term damage,” D. Powell said.

Which conclusion from the above can be done and how will this affect the dollar quotes? The Fed does not intend to cut the QE program and will do it for as long as necessary, which is negative for the dollar rate.

Investment idea: Buy 1.2080/1.2060 and take profit 1.2176.