The dollar reached a four-week high against the euro as signs of persistent U.S. inflation led to expectations that the Federal Reserve will not implement a large interest rate cut next week. Federal Reserve Governor Adriana Kugler noted that while the U.S. economy ended 2024 positively with reduced inflation and a strong labor market, the task of controlling inflation continues. San Francisco Fed President Mary Daly echoed this sentiment, stating that inflation remains above the Fed’s 2% target, emphasizing the need to avoid further labor market slowdown. The situation is ongoing, and updates are expected.
