EVENT OF THE DAY: Reports of the head of the Federal Reserve Powell!
Dear traders,
The head of the Fed, Jerome Powell, is due to present his first half-year report on the monetary policy and economic state of the United States to the Senate and Congress committees in Washington at 5 pm (Kyiv).
At the same time on Thursday, Powell will address the Committee on Banking and Financial Services of the House of Representatives of the Congress.
The text of the report will be published 90 minutes before the start of Powell’s speech.
Powell’s statements will be carefully analyzed to assess his attitude to the recent rise in inflation and the possible effect of this growth on the rate of interest rate increase. Investors will also monitor the market situation in light of the recent increase in volatility.
Published on the week the last meeting of the Fed strengthened forecasts about the acceleration of interest rate increase by the US central bank in comparison with previous forecasts.
And indeed, many analysts have started talking about the fact that because of accelerating inflation, the Fed will raise the interest rate four times this year in comparison with the previous plan of three such increases.
The next meeting of the Fed is scheduled for March 20-21. Traders consider the probability of an increase in the interest rate as a result of this meeting of the Fed at 80%.
Also, read the opinion of the leading expert of Ester A. Sivtsov:
“On Tuesday, the debut performance of the new head of the Federal Reserve in the US Congress will take place, at which the mid-year report on monetary policy will be presented. If Powell demonstrates a hawkish tone in his speech on further interest rate hikes, it will provide significant support to the US dollar.
Also, Powell will be expected to comment on the decline in stock indices since the January peak, while the profitability of the US government bonds has reached 3%. If Powell does not express his concern about this dynamic in the stock and bond market, this will support risky assets.“
Have a nice day! Stay up-to-date!
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