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The dollar ended four days in a row in search of a haven of peace, raising concern over the resurgence of trade wars, followed by the New York Economy Club messages from Fed President Powell. The dollar fell after the pigeon posts, the euro gained value.
The "pigeon" statement that the Fed's key rate, currently held in a range of 2 to 2.25%, is slightly below neutral levels has created market expectations that the bank could slow down the rate of increase of the Fed. next year rate or break the monetary tightening.
This prediction led to a devaluation of the dollar, while the euro / dollar parity moved from the 1,1285-1,1288 band on the international markets to 1,1309. The dollar / TL parity went from 5.2480 to 5.21.
Markets will be at the rendezvous and at the G-20 summit on the last meeting of the Fed announced tomorrow.
Exchange Scholarship
Meanwhile, ahead of Jerome Powell's speech, gold at $ 1,214 rose to $ 1,225, with lower interest rates.
Finally, US markets rose sharply following Powell's statements, while the Dow Jones index swapped to 2.5%, the Standard & Poor's 500 index to 2.30% and Nasdaq Technology at 3.17%.
The Fed 's quarterly economic projections indicated that the bank planned to end the year 2018 with four interest rate increases and to raise interest rates three times as much. early next year.
Regarding the indexes, Fed Chairman Jerome Powell's current key interest rates were slightly below neutral levels, indicating that the bank could signal a rate hike next year. .
On the other hand, according to data released today in the United States, the country's gross domestic product (GDP) increased by 3.5% in the third quarter.
"THE RATE OF INTEREST IS MANY NEUTRAL LEVELS"
"Tightening interest rates remain below historic standards and slightly below expected levels for the economy," he said. found in the evaluation.
Powell also noted that "the Fed's economic impacts on gradual rate hikes are unclear and may take a year or more to be fully realized," noting that there is no path predetermined to monetary policy.
In highlighting the stability of the US financial system, Jerome Powell said the financial sector was generally stronger than the global financial crisis of 2008, although the rise in corporate debt levels is alarming.
Fed Chairman Powell has not commented on criticism of US President Donald Trump.
In recent months, Trump has criticized the Fed and Powell for "raising the interest rate, making mistakes and posing a major risk to the economy."
Powell said the country's economy continued to grow about 3% per year on average, as the unemployment rate dropped to 3.7% at the lowest level of the past 49 years and the average annual growth rate was about 40%. inflation was close to 2%, said Jerome Powell. We expect that strong growth, low unemployment and inflation of about 2% will continue with the economist. he said.
Powell also pointed out that economic expectations do not always coincide with the facts. "The Fed will therefore pay great attention to what future economic and financial data say."
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