The results of the speech of the Federal Reserve chairman Powell
The Fed chairman Mr. Powell in his speech at the Jackson-Hole symposium noted that the further process of normalizing the economy is appropriate. And the main goal of the Fed remains the consolidation of positive results. At the same time Powell added that there are no signs for growth above 2%, as well as risks of overheating of the economy. A further policy of tightening monetary policy will be appropriate in the face of rising employment and income.
As a result, the market took this speech as containing restrained rhetoric, which indicates a pigeon tone. There is also a doubt in the speech about the second rate hike in the long run, not to mention that the Fed chairman became more restrained in the comments on the tightening of rates in the US.
The US dollar index on this speech renewed the minimum of the day at 95.00, which confirmed the safety of the downward dynamics of the US dollar. As a result, a test of support levels is possible: 94.80 and 94.60.
The US dollar index chart. The current price is 95.010 (10-year government bonds yield is blue line)
Read also: “Long-term positions on world indices”
Hanzenko Anton
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