The US Federal Reserve has lowered interest rates again as expected. The consequences of such a decision were also predictable. Cuts in interest rates in any country tend to make its currency lose value against others. That is what happened to the US dollar. However, given a number of fundamental factors, the American currency could have been more resilient. The decision to lower interest rates by 0.25 percent was supported by 8 members of the Federal Open Market Committee. Meanwhile, the remaining two members, regional Fed bank presidents Esther George of Kansas City and Eric Rosengren of Boston, advocated keeping rates unchanged at 1.75–2 percent. The main question is whether the Fed plans to continue the extended cycle of easing monetary policy. Most experts believe that the recent interest rate cut, by the way, the third time this year, will be the last, expecting the Fed leaders to hold off on another cut in December. The changes in its accompanying statement speak in favor of this decision. In particular, the phrase “taking necessary measures if they are needed” has disappeared from the text of the American central bank's statement. So, there is only a very small chance of another Fed's interest rate cut this year.

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