Analytical Reviews

Bekommen Sie die neuesten wirtschaftlichen Nachrichten von ForexMart, einschließlich Updates aus Finanzmarkt, Zentralbankpolitiksankündigungen, finanzielle Indikatoren und andere relevante Nachrichten, die die Branche beeinflussen können.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

The US Federal Reserve is waiting for quick measures due to high inflation


February, 18 2022
watermark Economic news

The president of the Federal Reserve Bank of St. Louis, James Bullard, said that the high level of inflation requires the Fed to take quick action. At the same time, he believes that the bond market will be able to calmly survive changes in monetary policy.


Bullard advocates raising the key rate by 1 percentage point by July, as well as starting to reduce the Fed's asset portfolio in the second quarter, the volume of which is close to $9 trillion. The head of the Federal Reserve Bank also noted that at the moment it will be enough for the central bank to reduce the balance passively, simply without replacing redeemable bonds.


«The best response in this situation is to cancel a significant portion of the stimulus at the beginning of the policy tightening cycle,» Bullard said. 


Bullard is known as an ardent supporter of raising interest rates in order to combat inflation. According to him, when the Fed starts raising the key rate from levels close to zero, it will still support the economy, and the risks of a potential recession are extremely small. 


Bullard's views are also shared by the President of the Federal Reserve Bank of Cleveland, Loretta Mester, who, like Bullard, is a voting member of the Open Market Operations Committee. Mester said that she considers it appropriate to raise the key rate in March and continue raising it in the following months.


However, some Fed officials do not share Bullard and Mester's desire to aggressively raise interest rates. San Francisco Fed President Mary Daly said she agreed with the increase in March, but in the future it will be necessary to wait for the data before deciding anything. The president of the Federal Reserve Bank of Minneapolis, Neil Kashkari, said that in the event of an aggressive rate hike, «we risk dramatically slowing down the economy and plunging it into recession.»


hinterlassen

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.
Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.