# Fed's policy still too tight for the rest of the world? – Nordea: Analytics and Market news from 29 October 2019 15:08

> Nordea analyst Andreas Steno Larsen argues that markets are underpricing further Fed rate cuts, citing tighter USD liquidity and a strong dollar that often precede global slowdowns. He notes that almost no major central banks have a higher policy rate than the Fed. He expects the Fed will need to narrow its rate spread with peers to end the global slowdown.

- Date: 2019-10-29 · published 2019-10-29T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/56779-fed-s-policy-still-too-tight-for-the-rest-of-the-world-nordea-analytics-and
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A strong dollar raises the local-currency cost of dollar-denominated feed imports for emerging markets, which can weigh on demand. If the Fed eases more than priced in, the dollar could weaken and support commodity prices.

## Read by commodity

- DXY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-10-31 | [Fed Preview: Three scenarios and their implications for BDXY – TDS: Analytics and Market news from 31 October 2023 14:17](https://feedsoft.ai/events/33819-fed-preview-three-scenarios-and-their-implications-for-bdxy-tds-analytics-and.md) | -1.4% | -2.9% |
| DXY | 2020-02-26 | [USD: Focus on the Fed - ING: Analytics and Market news from 26 February 2020 11:19](https://feedsoft.ai/events/54778-usd-focus-on-the-fed-ing-analytics-and-market-news-from-26-february-2020-11-19.md) | -0.6% | +7.0% |
| DXY | 2021-08-17 | [There’s a non-pandemic catalyst set to drive the dollar, pound and euro for the rest of 2021 - MarketWatch](https://feedsoft.ai/events/45808-there-s-a-non-pandemic-catalyst-set-to-drive-the-dollar-pound-and-euro-for-the.md) | +0.7% | -0.1% |
| DXY | 2025-03-19 | [US Fed meeting: ⁠How will FOMC meeting impact gold and crude oil prices? \| Stock Market News](https://feedsoft.ai/events/25475-us-fed-meeting-how-will-fomc-meeting-impact-gold-and-crude-oil-prices-stock.md) | +0.5% | -1.4% |
| DXY | 2024-02-08 | [The Federal Reserve and U.S. Treasury Did Not Intervene in FX Markets During the Fourth Quarter - FEDERAL RESERVE BANK of NEW YORK](https://feedsoft.ai/events/31865-the-federal-reserve-and-u-s-treasury-did-not-intervene-in-fx-markets-during-the.md) | +0.4% | -0.6% |

## Sources

- teletrade.org: https://www.teletrade.org/analytics/market-analysis/market-news/3612400

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