The Federal Reserve has reported significant strides in reducing inflation, positioning its monetary policy to achieve its goals effectively. The U.S. economy appears robust, with expectations of approximately 2% growth both this year and next. Inflation rates are projected to hover around 2.5% this year, stabilizing at 2% in the upcoming years. The central bank maintains that a modestly restrictive policy will help return inflation to its target rate of 2%.
Despite these positive economic indicators, global stock markets showed resilience against new tariff fears on Monday. With 25% levies on steel and aluminum imports coming into effect late Monday night, futures markets began to decline. The S&P 500 and Eurostoxx 50 indices are anticipated to open lower today, reflecting a cautious tone permeating financial markets.
The anticipation of upcoming U.S. inflation data scheduled for release on Wednesday increased selling pressure on the Greenback. Meanwhile, the AUD/USD displayed bullish behavior, nearing the 0.6300 resistance zone.
In light of these developments, it is crucial to note that neither the author nor FXStreet are registered investment advisors. The information presented in this article is not intended as investment advice but rather as an objective report on current economic trends and market conditions.