1 December 2022 | Other

US dollar weakens on expectations that Fed will slow pace of coming interest rate hikes

The dollar is declining after Federal Reserve Chairman Jerome Powell’s speech. He confirmed Wednesday that the Federal Open Market Committee (FOMC) might scale back the pace of the interest rate hikes at its December meeting. 

Speaking at the Brookings Institution in Washington, Powell highlighted that such a decision would allow them to balance risks. 

Joe Perry, senior market analyst at FOREX.COM in New York, commented on the Fed Chairman's speech. As reported by him, Powell clearly signaled that the FOMC would opt for smaller increases. He believes that stocks rose and the dollar began to weaken amid these comments.

The Federal Reserve is expected to downshift in December to deliver a 50-basis-point interest rate hike at its December 13-14 policy meeting.

The ADP jobs report also pushed the US dollar lower. The data showed that private sector employment increased much less than expected in November. According to the other data, the number of available jobs in the US in October dropped. 

Company MarketCheese
Period: 13.06.2026 Expectation: 1000 pips
Go long on USDCAD with 1.38800 target in play
Today at 10:48 AM 14
Period: 20.05.2026 Expectation: 100 pips
Natural gas prices are correcting within upward channel ahead of another rally
Today at 09:39 AM 11
Period: 20.05.2026 Expectation: 1000 pips
Investing in NVIDIA stock with $230 in sight
Today at 09:06 AM 10
Period: 20.01.2028 Expectation: 500 pips
Hot US inflation and geopolitical jitters weigh heavily on EURUSD
Today at 06:26 AM 16
Period: 12.06.2026 Expectation: 4700 pips
Invest in Bitcoin up to $86,000
Yesterday at 10:09 AM 32
Period: 31.05.2026 Expectation: 1900 pips
Buying GBPUSD on low US inflation
Yesterday at 09:54 AM 35
Go to forecasts