Dollar dips after Fed fails to provide taper timeline
- Dollar initially spiked after the Fed policy statement
- More details on Fed tapering due at Jackson Hole meeting
NEW YORK, July 28 (Reuters) – The dollar eased on Wednesday after the U.S. Federal Reserve said the economic recovery is on track despite a rise in COVID-19 infections in a policy statement that was upbeat but did not set a timeline for tapering Fed asset purchase.
While daily U.S. COVID-19 infections have quadrupled since the last Fed meeting in June, the central bank indicated it still had faith that an ongoing vaccination drive would “reduce the effect of the public health crisis on the economy” and allow a robust reopening to proceed. read more
Fed policymakers, in a unanimous statement, also said they were moving ahead with discussions about when to reduce the central bank’s $120 billion in monthly bond purchases, a precursor to eventually raising interest rates.