Now: Markets Surge Upward after FED
The US Central Bank, The Federal Reserve last night delivered as everyone expected. A rate hike of 75-basis point to 2.5% in which end up with the plunge of the greenback. The main reason of the plunge of dollar is that the Chairman, Jerome Powell, stated that the rate had reached the neutrality in which mean there will be no more planned rate hike and every decision after this will go meeting by meeting.
This statement has slowed down the fear of recession that held by almost everyone since the beginning of the quantitative tightening to fight the high inflation rate. Although the rate had reached the neutrality zone, Powell do stress out that the key to stable economy is beginning from the stable pricing in which still hint toward the fight of the high inflation rate in the economy at the moment.
28 July 2022