Fed Chairman Powell called for an early rate hike
[ad_1]
US Federal Reserve Chairman Jerome Powell said that the regulator will face the need for a faster and sharper increase in the key rate than previously thought. He attributed this to the tense state of the labor market and high inflation rates.
“Latest economic data came out tougher than expected. This suggests that the final level of interest rates is likely to be higher than expected,” Mr. Powell said during a speech in the US Senate (quoted from Reuters).
According to the head of the Fed, the US should also raise the debt ceiling. “Otherwise, the consequences can be extraordinarily negative and lead to long-term harm,” says Jerome Powell.
Against the backdrop of the speech of the head of the Fed, the dollar accelerated growth against the euro. Now the value of the European currency decreased to €1.0581/$ (compared to €1.0678/$ at the last close). Now the Fed’s key rate is in the range of 3-3.25%. In September 2022, it was increased by 0.75%.
[ad_2]
Source link
