NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the October – December 2024 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 6.6% in Q4 2024, the largest quarterly appreciation since the first quarter of 2020. The dollar’s appreciation was driven by the continued outperformance of U.S. economic growth relative to the rest of the world, slowing disinflation amid labor market strength, and Federal Reserve communications which were interpreted as less accommodative-than-expected and contributed to both higher Treasury yields and a notable upward repricing of the Federal Reserve’s path of policy. The dollar was further supported by expectations for shifts in economic policies by the incoming administration following the U.S. election in November.
On a bilateral basis, the dollar appreciated 7.5 percent against the euro and 9.5 percent against the Japanese yen.
The report was presented by Roberto Perli, the Federal Open Market Committee's manager 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.
