Economists shrug off the Aussie dollar slump
The Federal Reserve's guidance on Thursday morning caused a sharp reaction in the markets but local economists are holding firm.
Australian economists have shrugged off concerns about the plummeting Aussie dollar, saying it's a short-term reaction to Federal Reserve chair Jerome Powell's indications of fewer cuts in 2025 and a cautious "new phase" ahead.
And while the Reserve Bank will be watching it's offshore peers closely, local experts are also not convinced the RBA will need to change tack.
AMP deputy chief economist Diana Mousina told Capital Brief that while the Aussie dollar had taken “a bit of a tumble” she didn’t think this would last.
“The issue sometimes with the Fed and the initial market reaction is it’s outsized and the market tends to settle,” Mousina said.
