Fed recommends caution, rules out bubble bursting By Investing.com


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Investing.com – Investing.com, Jerome Powell, a day after the Federal Reserve decided to keep interest rates and begin tightening assets, estimated at 120 billion, beginning in November in the event of positive employment data.

Fed member Meister said she supports the start of tightening in November, as she expects the rising rate of inflation to begin to subside over time.

Meister indicated that the odds tend toward the Fed’s ability to raise interest rates at the end of 2022, with the tightening to be completed in mid-2022.

Meester went on to say the following:

  • I am open to the possibility of a US central bank digital currency.
  • The Fed does not want inflation expectations to exceed 2% over time.
  • The Fed will continue to buy assets after the onset of tightening but at a slower pace.
  • Asset buying is no longer very influential now and it is possible for the Fed to slow its buying pace.
  • I rule out a bubble about to burst with respect to real estate and stocks, but I recommend caution.

Jerome Powell’s most important words

Jerome Powell said: “While uncertainty is paralyzing business, it is an opportunity, and what we have seen over the past 18 months of creativity and adaptability is one of the few bright spots. meet the requirements of the new reality.

Market update

Heading to end the week lower after the Fed’s decision to start tightening monetary policy, which favored the US dollar index, and reduced the attractiveness of the safe haven.

While I tried to launch, Bitcoin, Ethereum, Cardano, Ripple, Avalanche, Polka dot, recorded strong levels during Wednesday and Thursday, but the Chinese pressure on the market again and the threat of the People’s Bank of China caused a strong drop in the market today.

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Sentiment was affected by the central bank’s unexpected rate cut, in light of the rise in the dollar index globally, and the turmoil in Turkish-American relations, so that all the nightmares of the lira returned at once, and headed for a record closing low against the dollar.

While the US weakens in light of rising European inflation, and the strength of the US dollar index.

Regarding oil prices, prices continue to rise in the hope of increasing demand during the winter season. And record 77.71 dollars a barrel, despite the strength of the dollar index. However, the data was positive for the US oil market, in terms of oil inventories data, and expectations of major institutions.

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