Dollar dips as Fed cites disappointing inflation, but keeps focus on cuts [Video]

The dollar fell on Wednesday after the U.S. Federal Reserve signaled it is still leaning toward eventual reductions in borrowing costs, but repeated that it wants to gain “greater confidence” that inflation will continue to fall before cutting rates.

“In recent months, there has been a lack of further progress towards the Committee’s 2% inflation objective,” the Fed said in its statement.

The statement was largely as expected while Fed Chair Jerome Powell also said at a press conference that it is unlikely that the U.S. central bank’s next move will be a hike, easing some concerns about the Fed potentially pivoting to a more hawkish stance.

Stickier-than-expected consumer price inflation in March dashed hopes that elevated readings in January and February were anomalies, leading traders to push back expectations on when the U.S. central bank is likely to cut interest rates.

Fed fund futures traders are now pricing in …