Press Release

The Federal Reserve and U.S. Treasury Did Not Intervene in FX Markets During the Second Quarter

August 11, 2022

NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the April – June 2022 quarter, the Federal Reserve Bank of New York said today in its quarterly report to the U.S. Congress.

The U.S. dollar, as measured by the Federal Reserve Board's broad trade-weighted dollar index, appreciated 4.9 percent in the second quarter of 2022. The move primarily reflected increased dollar demand given heightened concerns of a global growth slowdown. It also reflected persistently wide interest rate differentials in favor of the United States versus other advanced economies amid market expectations for the Federal Reserve to pursue a more rapid pace of policy rate increases against the backdrop of elevated U.S. inflation. The dollar appreciated 5.6 percent against the euro, 11.5 percent against the Japanese yen, 7.9 percent against the British pound, and 5.7 percent against the Chinese renminbi.

The report was presented by Patricia Zobel, senior vice president of the Federal Reserve Bank of New York and the Federal Open Market Committee's manager pro tem for the System Open Market Account, on behalf of the Treasury and the Federal Reserve System.

The full report is available on the New York Fed's website.

Brian Manning
(212) 720-6143
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