English
The head of the Federal Reserve is speaking and turning the markets around again.. The dollar is not moving and gold is rising
One day after the Federal Reserve Chairman's speech yesterday regarding the possibility of raising interest rates higher than expected, Jerome Powell reaffirmed now moving forward towards the continuation of the task of returning inflation towards 2%, in addition to confirming that no decision will be taken on the interest rate hike at the next meeting.
Powell confirmed a while ago that the Fed has not yet decided on the rate of interest rate hike at the next meeting, and that what will determine this rate is the upcoming data. Confirming that the final interest rate may be higher than expected.
"We have specific goals, which are restoring price stability and making optimal use of the labor market," according to Powell. He stressed, "If the economic data requires a further rate hike, we will do so."
He added: Inflationary pressures were higher than expected, especially since January data was strong in terms of the labor market, employment and consumer expenditures. Pointing out that there is still a long way to go to reduce inflation, and the road is likely to be difficult.
He continued: We see the consequences of the Fed's decisions, but it takes some time to return inflation to the required target.
Powell also noted that no one should think that the Federal Reserve can protect the economy in the event of a debt default.
