Australian Dollar Hits One-Month High After Fed Press Conference
The Australian Dollar rose 0.52% against the US Dollar on Wednesday, lifting AUD/USD to 0.7054 and a one-month high, its strongest level since 23 September. The move followed a press conference by Federal Reserve Chair Kevin Warsh, who reiterated the central bank’s commitment to a 2% inflation objective, measured by PCE, while describing the US economy as strong and policy tightening as working.
Federal Reserve Maintains Rates Amid Divided Decision
Earlier, the Federal Reserve kept rates at 3.75%–4% despite a divided decision, with two dissenters favouring a 25-basis-point increase. Warsh said the Fed will hold eight meetings next year, though one will not include a vote, and flagged six policy-setting meetings in 2028. The Fed said economic activity is expanding, domestic spending has been resilient and capital investment robust, while productivity growth was described as strong; it added that job gains have kept pace with the workforce and the unemployment rate has changed little. Inflation was characterised as still elevated, with policymakers opting to pause further hikes while assessing incoming information and the appropriate policy stance.
