1️⃣ Yesterday's main news
- Three "hawks" from the Federal Reserve have emerged, calling for an early start of QE cuts.
- The GDP growth rate of the US in the second quarter was slightly adjusted to 6.6%.
- The situation in Afghanistan is escalating, with multiple explosions in the capital, Kabul.
- The first developed country to raise interest rates: The Central Bank of Korea announced an interest rate increase of 25 basis points.
- Affected by the Gulf of Mexico hurricane, US natural gas futures prices increased by more than 7%.
2️⃣ Financial facts and data today
The US will publish the annual and monthly rates of the core PCE price index for July. The performance of related data may affect the volatility of the US dollar and yellow.
The Jackson Hole Global Central Bank Annual Meeting will begin. Fed Chair Powell will deliver a speech on the economic outlook.
Powell's keynote is coming, and Fed hawks call for starting to reduce debt purchases as soon as possible
Fed hawks urged the Fed to begin reducing its bond-buying plan a day before Chairman Powell's keynote speech. They believe that this plan has become ineffective and even harmful.
St. Louis Fed President Brad said on Thursday that "we don't need to buy assets at this point" and again urged the Fed to start slowing down its $120 billion worth of monthly debt purchases as soon as possible. well and finish the plan early next year.
Brad, Kansas City Fed President George, and Dallas Fed President Kaplan have mitigated the impact of the Delta variant virus under different circumstances. "The basic thing we've heard is that they have withstood the impact of this backlash at least as much as the last few times. Many people told us that their business was less affected," he said. much more."
Brad and George have both stated that the Fed has made steady progress on its plan to reduce debt purchases, which is aimed at keeping interest rates low to support the economy. Brad said the Fed is "unifying" on the reduction plan. George told Fox Business Channel that she expects more information after the Fed meeting on September 21-22.
In view of strong inflation and projected job growth, "there's an opportunity to start reducing asset purchases," George said, and she wants the process to start "as soon as possible."
Kaplan also reiterated his view that the Fed should announce the plan after its September meeting, begin action in October or "soon after" and complete the cuts in about eight months.
Fueled by Fed officials' comments on QE cuts, DXY turns bullish again
The US Dollar Index edged up slightly before the President of the Federal Reserve St. Louis, Brad made the above comment. Brad is considered a latecomer in the policy. Brad said in an interview that he doubts whether inflation will slow, so the Fed needs to start scaling back its bond-buying program. "We have to start reducing the size of bond purchases and finish buying bonds in the first quarter of next year. Then we can assess the inflation situation."
Federal Reserve Chairman Dallas Kaplan said that strong momentum in the US economy still gives the Fed hope in October or shortly after. Start reducing the size of your monthly bond purchases.
Markets may devalue Brad's comments, in part because he doesn't have a vote on the Fed's policy-making committee, but Ricchiuto said, "His voice can be 'heard in the meeting room, so you have to assume it has "
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