Summary of Fed statements and market reaction to interest rates and inflation.

In the recent period, statements by US Federal Reserve officials,
which are always awaited by the markets with caution,
in order to build their expectations regarding interest rates,
and the statements increased after positive inflation data,
which was also preceded by strong employment data.

The most important details from the Evest platform

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The most important statements of Mary Daly Chairman of the Federal Reserve in San Francisco

US inflation data numbers and their impact on the markets.

The most important statements of Mary Daly Chairman of the Federal Reserve in San Francisco

That we should not rush to a victory judgment regarding the issue of combating inflation,
and she also said that keeping prices still very high,
and this needs support for increases in interest in order to limit the rise in prices.

Mary Daly did not rule out the third rise in a row by about 0.75 percentage
points at the next September meeting of the Central Bank.

These comments come in the midst of intense debates regarding the speed with which the Federal Reserve
will tighten monetary policy in the second half of 2022,
after raising interest rates at the fastest pace since the early 1980s in the first half of the year.
Which was close to zero in March, is now stable between 2.25 and 2.5%.

Daly added that the rates must rise to a little less than 3.5 percent by the end of this year,
a level that measures business and consumer activity,
but at the same time she warned in order to stabilize demand at a strong and severe pace.

Daly also added that jumping forward with great confidence that
a rate hike of 0.75 percentage points is our goal and should be directive,
it would not be optimal policy.

She said that the Federal Reserve has already tightened monetary policy significantly
and that the full effects of these measures have not yet seeped into the economy.

Other global central banks are working to raise interest rates quickly,
not synchronized with the tightening of global financial conditions significantly,
at a time when economic growth in developed and emerging countries is strained.

She said we have a lot of work to do, and I don’t want to do it
so interactively that we find ourselves spoiling the job market.

She backtracked from investors’ growing expectations that
the Fed would suddenly cut interest rates next year,
and said that if we lose the economy and people lose their jobs,
we’re not really going to make them better off.

The next meeting of the Federal

As the Fed’s next meeting in September approaches,
officials will have another month’s jobs and inflation data,
and they will seek to monitor the reports closely to see
if it is appropriate to shift to a slower pace of policy tightening.

artıcal name Summary of Fed statements and market reaction

US inflation data numbers and their impact on the markets.

The statistics data in the United States on Wednesday indicated a slowdown
in the growth of US inflation strongly during the month of July,
with the stability in the consumer price index at zero levels,
less than expectations that had expected a growth of only 0.2% for the index,
and it is considered less than The previous reading,
which recorded a growth of about 1.3% during the month of June.

The US core inflation data on a monthly basis rose by 0.3%,
less than the market expectations of a growth of 0.5%,
while the previous reading recorded a growth of 0.7% during the month of June.

It is worth noting that the US inflation index measures the change in the prices
of goods and services provided to consumers on a monthly basis,
and it also measures the monthly change in consumer prices,
which refers to US inflation rates.

On an annual basis, the data showed that US inflation grew by 8.5% at the end of last July,
less than expected, which was only 8.7%, and it is from the previous reading,
which recorded a growth of 9.1% during the month of June.

The annual US inflation index measures the change in the prices of goods
and services provided to the consumer on an annual basis
and is considered the first measure of inflation rates in America.
Inflation is also considered a rise in the prices of goods and services in general,
and the relationship between US inflation and interest rates is an important factor
for understanding how this indicator affects Markets and Investments

artıcal name Summary of Fed statements and market reaction

Summary of Fed statements and market reaction

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