SAFAKNA TURKEY – US Federal Reserve Chairman Jerome Powell’s presentation on the semi-annual monetary policy report has begun, which will last two days in the US Congress.
Speaking before the US Senate Committee on Banking, Housing, and Urban Affairs on the first day of the presentation, Powell said that while inflation has been moderate in recent months, the process of bringing inflation down to 2 percent has a long way to go and that the road could be bumpy.
“The latest economic data came in stronger than expected, suggesting that the final level of interest rates could be higher than previously expected,” Powell said. said.
“IF NECESSARY, THE RATE OF INTEREST MAY INCREASE”
Saying that restoring price stability would likely require them to maintain restrictive monetary policy for some time, Powell said: “We are ready to accelerate the pace of rate hikes if the backbone of the data shows that faster tightening is needed.” He said.
Recalling that they have taken decisive steps to tighten monetary policy over the past year, Powell noted that they have come a long way and that the full effects of the tightening have yet to be felt. “We still have a lot of work to do,” Fed Chairman Powell said. said.
Noting that the data on employment, consumer spending, manufacturing production and inflation for January partially reversed the softening trend seen in the data a month ago, Powell said the revisions made in the previous quarter, as well as the degree of reversal, show that inflationary pressures are declining. higher than expected.
Powell said so far there has been little sign of declining inflation in the core services category, with the exception of housing, which accounts for more than half of core consumer spending.
“TAKE TIME TO FEEL THE EFFECTS OF A TAKING”
Noting that the impact of policy measures on demand is observed in the most sensitive sectors of the economy, Powell noted that it will take time for the impact of monetary restrictions, especially on inflation, to be fully felt.
Powell said: “We will continue to make our decisions from meeting to meeting, taking into account all the incoming data and its reflection in economic activity and inflation forecasts.” He said.
HOW DID THE MARKETS RESPOND TO POWELL’S DISCLOSURES?
After Fed Chairman Powell’s speech, the dollar strengthened around the world, and US bond yields rose. An ounce of gold, which rose in price during the day to 1851 dollars, fell to 1821 dollars.
The price in the swap market, which was 25 basis points at the March meeting of the Fed, increased to 50 basis points.
Random Post
- They are said to be cursed for their strange appearance!
- Last minute: The Central Bank cut the discount rate by 50 basis points!
- Father and son bitten by tick taken to hospital
- What is the harm of uncontrolled fluid intake?
- Government “leave the city” bribe!
- TL continues to depreciate
- The increase in VAT was also reflected in the prices of phone packages!
- Medicine prices have gone up
- Italy decides to ban artificial meat
- Quiet increase in fuel prices!