Back
The US dollar collapsed after the Fed rate hike
The US Federal Reserve raised rates on Wednesday for the first time since December 2018
Mar 17, 2022
1 min read
Anna BakkerNews analyzer

The dollar fell amid a press conference by Fed Chairman Jerome Powell.

The dollar index declined despite rising US government bond yields. The 10-year Treasury yield reached a nearly three-year high of about 2.24%.

As a result of the March meeting, the US Federal Reserve System (FRS) expectedly raised the base interest rate by 0.25%, to the level of 0.25-0.5% per annum, the regulator said in a press release.

In addition, the Fed announced the start of reducing its balance sheet by $8.9 trillion from the next meeting.

FOMC members voted 8–1 in favor of the raise. The well-known hawk, St. Louis Fed President Bullard, immediately voted for a 0.50% rate hike.

Most FOMC members expect seven 0.25% rate hikes by the end of the year, with six more ahead, roughly in line with futures prices.

FOMC member rate projections suggest that the Fed rate will be 1.9% at the end of the year, reach 2.8% in 2023, and remain at that level in 2024 when the forecast horizon ends.

The head of the US Federal Reserve, Powell, noted the good state of the US economy and a strong labor market. At the same time, high rates of inflation "create significant difficulties." Powell vowed to do whatever is necessary to slow inflation.

The economy no longer needs emergency monetary policy, and rate hikes should have started earlier, the Fed chief said.

Last article
Read other articles
Anna Bakker News analyzer
BTC has lost about 7% from its recent high of $ 42,500
Aug 3, 2021
1 min read
Anna Bakker News analyzer
XRP jumped 23% on Aug 11, surpassing the $ 1 mark for the first time since early June. Over the past 7 days, the sixth cryptocurrency has grown by 40%
Aug 12, 2021
1 min read
Anna Bakker News analyzer
Bitcoin Gains $ 3,000 After Announcement That Coinbase Will Allow Cryptocurrencies To Be Purchased Through Apple Pay
Aug 6, 2021
1 min read
Forex Expert Advisors for your Profits
Forex trading robots based on AI. Innovative trading technologies for a stable growth of your profits