He explained that the reserve Federal In a position to reduce the pace of interest increases as soon as next month, however, Powell warned that monetary policy is likely to remain constrained for a while, pending clear signs of a slowdown. inflation.
He also warned that the battle to fight inflation It is nowhere near over yet, and fundamental questions remain unanswered, including the level to which interest rates will eventually need to be raised and for how long.
And he said Powell "Despite some promising developments, we still have a long way to go to restore price stability".
He pointed out that policy moves such as raising interest rates and reducing the holding of federal bonds take time to show their effects in the economy, and therefore, it is logical that we reduce the pace of raising interest rates as we approach the level necessary to control inflation. The time may come to adjust the pace of interest increases in the December meeting.".
The Chairman of the Federal Reserve said Jerome Powell Cutting interest rates is not something the board will do soon, adding that no one expected interest rates to rise like this or inflation to reach this level.
Market participants now largely expect the Fed to raise interest rates by 50 basis points at its next meeting in December, after it approved 4 consecutive increases of 75 basis points.
Wall Street welcomes
I welcomed Wall Street President’s remarks US Federalto end Wednesday’s session on a sharp rise, as the Standard & Poor’s 500 index rose by 121.18 points, or 3.06 percent, to close at 4078.81 points, while the Standard & Poor’s 500 index rose Nasdaq The Composite 484.62 points, or 4.41 percent, to 11,468.40 points. rose Dow Jones Industrial Average 716.21 points, or 2.12 percent, to 34,568.74 points.
The yellow metal is getting brighter
He also reacted yellow metal With Powell’s remarks, jump in gold prices to the highest level in two weeks in early Asian transactions Thursday.
By 0039 GMT it had risen gold In spot transactions, it rose 0.4 percent to $1,775.77 an ounce, after touching the highest level since November 16.
US gold futures rose 1.7 percent to $1,788.90 an ounce.
It is mentioned that lower interest rates increase the attractiveness of Afor precious metal It lowers the opportunity cost of holding non-interest-bearing gold. Gold ended November transactions, up by more than eight percent, which is the highest monthly rate of increase since July 2020.
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Asked, at the Brookings Institution in Washington, by an economist at JP Morgan if he would take a “shock and awe” approach to oil prices, Benefit“I think we’re in a position where the right thing to do is to move very quickly like we did, and now we slow down and get to where we think we need to be, and by the way, there’s a lot of uncertainty about that,” Powell said.
He explained that the reserve Federal In a position to reduce the pace of interest increases as soon as next month, however, Powell warned that monetary policy is likely to remain constrained for a while, pending clear signs of a slowdown. inflation.
He also warned that the battle to fight inflation It is nowhere near over yet, and fundamental questions remain unanswered, including the level to which interest rates will eventually need to be raised and for how long.
And he said Powell “Despite some promising developments, we still have a long way to go to restore price stability.”
He pointed out that policy moves such as raising interest rates and reducing the holding of federal bonds take time to show their effects in the economy, and therefore, it is logical that we reduce the pace of raising interest rates as we approach the level necessary to control inflation. The time may come to adjust the pace of interest increases in the December meeting.
The Chairman of the Federal Reserve said Jerome Powell Cutting interest rates is not something the board will do soon, adding that no one expected interest rates to rise like this or inflation to reach this level.
Market participants now largely expect the Fed to raise interest rates by 50 basis points at its next meeting in December, after it approved 4 consecutive increases of 75 basis points.
Wall Street welcomes
I welcomed Wall Street President’s remarks US Federalto end Wednesday’s session on a sharp rise, as the Standard & Poor’s 500 index rose by 121.18 points, or 3.06 percent, to close at 4078.81 points, while the Standard & Poor’s 500 index rose Nasdaq The Composite 484.62 points, or 4.41 percent, to 11,468.40 points. rose Dow Jones Industrial Average 716.21 points, or 2.12 percent, to 34,568.74 points.
The yellow metal is getting brighter
He also reacted yellow metal With Powell’s remarks, jump in gold prices to the highest level in two weeks in early Asian transactions Thursday.
By 0039 GMT it had risen gold In spot transactions, it rose 0.4 percent to $1,775.77 an ounce, after touching the highest level since November 16.
US gold futures rose 1.7 percent to $1,788.90 an ounce.
It is mentioned that lower interest rates increase the attractiveness of Afor precious metal It lowers the opportunity cost of holding non-interest-bearing gold. Gold ended November transactions, up by more than eight percent, which is the highest monthly rate of increase since July 2020.