EUR/USD+0.07%
Fed officials mostly back slowing pace of rate hikes
The majority of participants at the November meeting of the Federal Open Market Committee (FOMC) supported slowing down the pace of interest rate increases from next month. The decision could allow the FOMC to review better its progress toward reducing inflation to the target range, the highlights of the November meeting revealed on Wednesday.
While all participants at the meeting agreed that the 75-basis-point rate hike from earlier this month was appropriate, the report hinted that there are high odds the Federal Reserve will increase its key rates by 50 basis points at the policy meeting scheduled for December 13-14. Commenting on the labor market, the report argued that there were signs of rebalancing between supply and demand.
Wall Street extended gains following the report ahead of the holiday break. Meanwhile, the euro rebounded against the dollar to a level last seen seven days ago, hovering around levels from early July.