Powell removes the fear of financial interests

Last month, Powell announced that the interest rate was far from the level at which it would no longer stimulate the economy. This has fueled the fear of a significant rise in interest rates by the Fed over the next few years. Since then, there is more and more noise that the central bank is not going to hit the brakes very hard.

In addition, the Fed released a report stating that global trade tensions and the risk of a hard blow were risks to the US financial system.

The US umbrella of central banks summarizes both the strengths and weaknesses of the financial system. For example, the report indicates that the situation is now significantly better than before the financial crisis of 2008. But the editorial also points out that stock prices have risen sharply. The debt of the business world is also historically high.

There are external shocks, such as a growing trade war between the United States and their major trading partners or a disorderly disruption between Britain and the European Union, so, according to experts, a firm correction of the market.

The Fed intends to submit such a report twice a year. Previously, this type of information was disseminated in various other reports. Fed Chairman Jerome Powell, who took office earlier this year, believes that transparency on this topic is very important.