Now: Panic Can Still Return

Fed Chair Jerome Powell will soon testify before the US Congress on the current situation of the economy and the current patch and pace will be taking by the Fed. People are looking for the hint on the how strict the quantitative tightening will be. On the other hand, Yen collapse against most of other major currencies as Bank of Japan still want to continue with their ultra-loose monetary policy.

Central banks around the world are hinting an aggressive measure. The chief economist of Bank of England, Huw Pill, state that they always ready to take any measure and act accordingly if the current pressure on the price raises still continue. Philip Lowe, the Governor of Reserve Bank of Australia, also said that they are ready anytime for the 50-basis point rate hike in July. Lastly the Governing Council member of European Central Bank, Olli Rehn, said that it is possible for the September rate hike will be bigger than 25-basis points.