EUR/USD holds near 1.1660 as Fed Minutes clash with Trump’s pressure
EUR/USD advances steadily during the North American session as the Federal Reserve (Fed) unveils its latest Meeting Minutes. At the time of writing, the pair trades at around 1.1660 and clings to minimal gains of 0.13%.
Hawkish Fed Minutes caps Euro’s advance; Trump presses Fed governor to resign amid fraud probe
The Minutes of the Fed’s August meeting showed that the majority of the board “saw inflation risk outweighing employment risk,” and that several officials said, “that the current rate may not be far above neutral.” This contradicts what US Treasury Secretary Scott Bessent argued in a Bloomberg interview, that interest rates should be lower by 150 to 175 basis points (bps).
After the release of Minutes, the EUR/USD retreated from around daily highs of 1.1672 to 1.1660, which seems to be a hawkish reaction by market participants.
Meanwhile, the White House continues to pressure Fed officials to reduce interest rates, as breaking news revealed that “Trump presses Fed’s Cook to quit after mortgage fraud allegation.”
Earlier, a Bloomberg article revealed that the Federal Housing Finance Agency Director Bill Pulte alleged that Fed Governor Lisa Cook “falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.”
Across the pond, July’s inflation in the Eurozone remained steady at around the European Central Bank's (ECB) 2% target.
Source: Fxstreet
