# Mexican Peso rises after Powell’s comments and Fed hold rates

> The Federal Reserve held its federal funds rate at 5.25%-5.50% and said it would slow balance sheet runoff starting in June, cutting the monthly Treasury reduction from $60 billion to $25 billion. Chair Powell said rate cuts require greater confidence that inflation is moving toward 2%. The peso gained about 0.8% against the dollar after the decision.

- Date: 2024-05-01 · published 2024-05-01T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/30485-mexican-peso-rises-after-powell-s-comments-and-fed-hold-rates
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A more dovish Fed stance weakens the dollar and supports emerging-market currencies such as the peso. That lowers the local-currency cost of imported feed for Mexico.

## Read by commodity

- USDMXN: bearish ▼

## Sources

- fxstreet.com: https://www.fxstreet.com/news/mexican-peso-gains-against-us-dollar-ahead-of-key-fomc-decision-202405011637

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.