The FED has cut interest rates three times in the last three meetings as the global and the US economy softened considerably in the last several months. Markets are not expecting any more cuts right now, but if the economic weakness continues, then we can’t rule out another cut. Dallas FED president Robert Kaplan confirmed this jut a while ago. Here are some of his comments:

• Monetary policy is in the right place right now
• We now have a more normally shaped yield curve
• Economy needs more than just monetary policy
• Would need to see material change in the outlook to move rates
• We’ve got a good chance to grow 2% next year
• But Q4 this year is going to be weak

Kaplan isn’t a voting member this year but he will be in 2020, so his opinion matters. So, Kaplan is confirming what we heard from the FED in the last meeting, no more rate cuts for now. This should be mildly positive for the USD in the coming months, as the rest of the globe continues to weaken economically and further monetary easing is expected from other major central banks.