The fed at the meeting on December 14-15, it will discuss the option of accelerating the rate of reduction in the volume of redemption of bonds. This was stated by its chairman Jerome Powell, writes CNBC…
In November, the Fed agreed to cut the program quantitative easing from the current $ 120 billion to $ 15 billion monthly, until June 2022. During his speech to the Senate on November 30, Powell admitted that this process will end “several months earlier than expected.”
Earlier, he noted that the rate hike will not occur until the full withdrawal of incentives. In other words, the Fed can tighten policy if necessary as early as spring 2022. At the same time, the chairman stressed that these events would not necessarily follow one another.
The reason for the revision of the Fed’s position was the strengthening of inflation, which reached its maximum in 30 years in October (6.2% in annual terms). Powell and many of his colleagues had previously insisted that her surge was “temporary”.
“Perhaps now is the right time to give up this word. [«временный»] and try to explain more clearly what we mean. […] Our policy […] will continue to adapt. We’ll use tools to make sure higher inflation doesn’t take hold“- he explained.
The change in FRS rhetoric caused a strengthening of the dollar and a deterioration in sentiment in the US stock market – the S&P 500 index closed trading on November 30 with a drop of 1.9%.
The cryptocurrency market interrupted the recovery after Powell’s speech. Bitcoin corrected from $ 59,000 to $ 57,000 within two hours and remains close to established levels at the time of writing, according to CoinGecko… Ethereum dropped to $ 4520, but subsequently returned to levels above $ 4700, observed before the comments of the head of the Fed.
Recall that Glassnode analysts doubted the continuation of the correction in the cryptocurrency market. They pointed to a high share of “profitable” coins and a balanced situation in the crypto derivatives market.
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The fed at the meeting on December 14-15, it will discuss the option of accelerating the rate of reduction in the volume of redemption of bonds. This was stated by its chairman Jerome Powell, writes CNBC…
In November, the Fed agreed to cut the program quantitative easing from the current $ 120 billion to $ 15 billion monthly, until June 2022. During his speech to the Senate on November 30, Powell admitted that this process will end “several months earlier than expected.”
Earlier, he noted that the rate hike will not occur until the full withdrawal of incentives. In other words, the Fed can tighten policy if necessary as early as spring 2022. At the same time, the chairman stressed that these events would not necessarily follow one another.
The reason for the revision of the Fed’s position was the strengthening of inflation, which reached its maximum in 30 years in October (6.2% in annual terms). Powell and many of his colleagues had previously insisted that her surge was “temporary”.
“Perhaps now is the right time to give up this word. [«временный»] and try to explain more clearly what we mean. […] Our policy […] will continue to adapt. We’ll use tools to make sure higher inflation doesn’t take hold“- he explained.
The change in FRS rhetoric caused a strengthening of the dollar and a deterioration in sentiment in the US stock market – the S&P 500 index closed trading on November 30 with a drop of 1.9%.
The cryptocurrency market interrupted the recovery after Powell’s speech. Bitcoin corrected from $ 59,000 to $ 57,000 within two hours and remains close to established levels at the time of writing, according to CoinGecko… Ethereum dropped to $ 4520, but subsequently returned to levels above $ 4700, observed before the comments of the head of the Fed.
Recall that Glassnode analysts doubted the continuation of the correction in the cryptocurrency market. They pointed to a high share of “profitable” coins and a balanced situation in the crypto derivatives market.
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