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Is the dollar bullish?, Support interest rate hikes; Mt4.mt5 transaction analysis

发布时间：2022-08-25 浏览：115

On June 29, Cleveland Fed chairman mester said that if the economic situation remained unchanged when the Fed met in July to decide on the next monetary policy measure, she would advocate raising interest rates by 75 basis points.

The monetary tightening route of the Federal Reserve has become a key driver of market activity in recent months. The bank seeks to take positive action to curb soaring inflation, while acknowledging that a larger rate hike will increase the risk of economic recession.

Earlier this month, the Federal Reserve decided to raise the benchmark interest rate by 75 basis points, the largest increase since 1994. At present, the inflation rate is at a 40 year high.

Mester, who has voting rights in the Federal Open Market Committee (FOMC), said that the July meeting may involve a debate among FOMC policymakers on whether to choose 50 basis points or 75 basis points.

Mester said she would assess the supply and demand situation in the weeks before the meeting to determine the preferred path of monetary policy tightening.

The "dot matrix" of individual expectations of FOMC members shows that by the end of this year, the Fed's benchmark interest rate will rise to 3.4% from the current target range of 1.5% - 1.75%.

Mester said, "I think it is very important to raise the interest rate to 3-3.5%. We should do this quickly and continue to do so in the process of our progress. So after that point, I think there is more uncertainty about how far we need to go to control inflation."

The U.S. market fell sharply on Tuesday. The previously released consumer confidence index was 98.7, which was lower than the 100 estimated by the Dow Jones industrial average, making investors further worried about the compound effect of economic growth slowdown and radical monetary policy tightening.

Mester believes that consumers' feelings about inflation (the inflation rate reached 8.6% in May) "cast a shadow on their confidence in the economy".

She said, "at the Federal Reserve, we are now raising interest rates to a more normal level, and then may raise them slightly to enter the restrictive range, so that we can reduce the inflation rate, so that we can maintain a good economic development. Our priority now is to control the inflation rate, which I think now affects consumers' views on the economy and the direction of the economy."