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The Fed Chairman's speech on the Federal Reserve's future monetary policy is eagerly awaited as experts and investors expect it to provide information on how the Fed will proceed. Rumors have been circulating for a few days that Jerome Powell could deviate from the expected pace of rising interest rates next year and slow things down a bit.
Dow & Co clearly in the most
On Wall Street, the big indices exceed 1.5%. This suggests that Jerome Powell fueled speculation about a slower rate hike. "There is no fixed interest rate." Powell dropped that phrase in his speech today and may have fueled the hopes of stockbrokers. In addition, Powell said he saw current interest rates below the neutral level. This could indicate that the Fed will raise interest rates again in December, but will postpone expected interest rate increases for 2019.
Podcast Com & # 39; on – The Stock Exchange: This week we are talking about the shares of Deutscher Bank, Wirecard, Covestro and Thyssenkrupp.
Impact of interest rate hikes not yet foreseeable
In his speech, Powell went on to say that the effects of rising rates may not be predictable for a year. This statement could also be in favor of a slowdown in interest rate increases, as the Fed wants to wait to see what the effects will be.
The euro seems to be similar
In the speech of Fed Chairman Powell, the single European currency is again appreciated against the dollar from 1.13 and reached a new high for the day.
By Markus Weingran
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