We present to you a live follow-up to the speech of Federal Reserve Chairman, Jerome Powell, after the Fed raised interest rates at the highest rate since 2008, when the housing crisis hit the US economy.
The most important statements:
- Fed committed to bringing inflation down to 2%
- The real estate market weakened strongly
- The labor market remains strong, with the unemployment rate remaining near 50-year lows
- The Fed is committed to raising interest rates, and keeping them high for a longer period
- The Fed mentions inflation figures, to show that inflation has not calmed down despite the drop in gasoline prices.
- Inflation will end the year at 5.2%, target at 2%
- Inflation risks remain upwards
- The Fed is committed to the program to reduce purchases
- The Fed warns of the possibility of inflation taking root in the economy
- The Fed continues to rely on incoming data, without a clear plan for the future
- Over time, the Fed will reduce its rate hike
- The Fed will use all its tools to keep inflation down to 2%.
- The US labor market will weaken
- Fed with one message and don’t change, we will drop inflation to 2% by doing what needs to be done
- The Fed prefers falling demand, lower inflation, and lower growth below the curve
- The Fed will continue to tighten until this tightening leads to a drop in inflation, but the tight monetary policy will remain for an extended period of time until the Fed feels inflation
- The possibility of bringing down inflation without bringing the economy into recession is fading to the point that our monetary policy has to be tight for much longer.
- Powell said he doesn’t know if the economy will go into a recession, and if it does, how much damage will be done
- More comments from the Fed indicate the intensification of its war on inflation, President Powell says that meaningful pressure should be put on inflation.. He believes that monetary policy should go to higher levels of tightening.
- The Fed will raise interest rates by 125 points by the end of the year according to what members see now, to reach the rate of 4.50%.
- Fed decisions will lead to more pain: additional debt, weak labor market, weak growth, but the repercussions and rootedness of inflation is the real devastation
- The real estate market needs a correction, and the Fed will let it run its course to get back to health
Gold prices are rising strongly, with the Federal Reserve warning that inflation is rooted in the economy, and gold is a tool to hedge against inflation.
– The dollar index trimmed profits down to 110,733 levels, up 0.70%, after it exceeded 111 levels.
The Dow Jones is trying to rise, with an increase of 0.02%.
Dow Jones gains 0.58%