The value of the US dollar has continued to decline from recent highs. Members of the Federal Reserve don't have clear plans about the next rate hike.
Following last week's FOMC meeting, the Fed softened its tone about raising the rate in March. To put it simply, the US regulator lacks clarity on its updated monetary policy, which they announced last week.
Reuters reported that although a rate hike in March was announced during the Fed meeting last Wednesday, cautious rhetoric was voiced on Monday about the uncertainty of the prospects for inflation and the ongoing pandemic, and it may be worth leaving rates unchanged in March.
Mary Daly, President, and CEO of the Federal Reserve Bank of San Francisco mentioned this to Reuters.
At the same time, President, and CEO of the Federal Reserve Bank of Richmond Tom Barkin told CNBC that the best position is certainly somewhere closer to neutral than it is now.
However, Fed Chairman J. Powell backed up his current words, saying that US central banks were considering raising interest rates in March after all. He notes that it would be their first step towards reducing support for the economy. But it's still in question.