WASHINGTON (Archyde.com) – Federal Reserve Chairman Jerome Powell said on Monday the US central bank must act “urgently” to bring down high inflation, adding that it may use larger-than-usual increases in interest rates if necessary.
“The labor market is very strong and inflation is very high … there is a clear need to act urgently to bring the monetary policy stance back to more neutral levels and then move to more restrictive levels if that is what is needed to restore price stability,” Powell added.
In particular, he said, “if we conclude that it is appropriate to move more aggressively to raise the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so.”
Powell also repeated that the Fed’s cuts to its massive balance sheet might begin as early as May.
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US central bank
Gold prices stabilize following the US central bank raised interest rates by a quarter of a percentage point.
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Gold prices stabilize with the decline of the dollar
Gold prices stabilized today, Wednesday, with the dollar slipping, following the Federal Reserve (the US central bank) raised interest rates by a quarter of a percentage point in a move that was widely expected.
With the new decision, the US interest rate range increases from zero – 0.25% to 0.25 – 0.5%.
And the price of gold in spot transactions rose 0.1% to $ 1920.45 an ounce (an ounce), following it fell during the session by as much as 1.2% to $ 1894.70, in light of the jump recorded by the US Treasury bond yields following the central bank’s announcement.
And US gold futures fell 1.1% at settlement to $ 1908.40.
Gold is very sensitive to rising interest rates, as this increases the cost of holding bullion that does not yield a return, while supporting the dollar priced in it.
However, the dollar index fell 0.5% once morest a basket of currencies, which makes gold less expensive for holders of other currencies. Meanwhile, the benchmark 10-year Treasury bonds have also fallen from recent highs.
In terms of other metals, the price of silver in spot transactions rose 0.3% to $ 24.94 an ounce, and platinum jumped 3.3% to $ 1018.65. As for palladium, it fell 0.2% to $ 2418.56 an ounce, as concerns regarding supply receded.
LONDON (Archyde.com) – European shares fell on Tuesday, led by commodity-related shares, as rising concerns regarding a jump in coronavirus infections in China exacerbated tensions ahead of an expected rise in US interest rates.
The pan-European STOXX 600 index closed 0.3 percent lower following rising in the previous two sessions when hopes of progress in peace talks between Russia and Ukraine boosted sentiment.
Mining companies fell 2.1 percent, while oil and gas companies fell 0.1 percent, with crude prices falling more than seven percent and industrial metals falling due to concerns regarding demand from the main consumer China, following a jump in Covid-19 infections.
In addition to the negative news from China, the US central bank is expected to launch a cycle of rate hikes on Wednesday with an increase of 25 basis points.
The Bank of England is also expected to raise borrowing costs on Thursday.
A survey showed that German investor confidence suffered a record drop in March due to the war in Ukraine and economic sanctions once morest Russia.
The dollar is falling, and investors are waiting for the “US Central”
written by Alexandra Hartman Editor-in-Chief
LONDON (Archyde.com) – Retreat dollar Today, Tuesday, it remained within its swing range recently, as investors awaited a speech by Jerome Powell, Chairman of the Federal Reserve, “the US Central Bank” in a session of Congress later today.
European shares rose in early trading following a rebound in late trading in the US stock market, while US bond yields rose slightly.
Investors hope that Powell will give clues regarding when to tighten monetary policy when he answers questions from the Senate Banking Committee as he seeks a second four-year term as US central bank chief.
By 08.40 GMT, the dollar index was down 0.1 percent, recording 95.817, much lower than its highest level reached at the end of November, when the tendency to tighten monetary policy increased among the Federal Reserve’s decision-makers.
Some large US banks now expect to raise rates four times this year, starting in March.
The euro recorded 1.1346 dollars and remained within its swing range in the recent period.
The dollar rose 0.1 percent once morest the Japanese yen, hitting 115.280 yen to the dollar.
The British pound reached its highest level once morest the dollar in two months, recording 1.362 dollars.
With regard to cryptocurrencies, the price of Bitcoin returned to rise, recording regarding 42 thousand dollars, following it fell to forty thousand yesterday, Monday, for the first time since September.
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