The euro shows the highest 2-month results, while the dollar gradually loses its position and demand. The Fed will not deviate from its plans, continuing the introduction of monetary stimulating support, without taking into account the expected next rise in inflation.
This week, the Fed released its results, which did not come as a surprise to many market participants. The regulator does not take any action to increase the existing rates for federal funds, but left it in the range from 0 to 0.25%, and the implementation of quantitative easing continues with a monthly expense of $ 120 billion. Fed chairman Jerome Powell says that it is premature to talk about a shrinking process in the volume of asset purchases. With particular emphasis on the issue of employment in a country that is already lagging behind the February indicators of the past year, which reached 8.5 million. Given that the level indicator of inflation has reached its highest, comparing with the data of 2013 and exceeding 2.4%. Powell believes that this process will not last long. While maintaining massive monetary stimulus, this only contributes to the next decline in the dollar.
And the fact that the dollar has always performed a stable function of a protective asset, now its weakening pushes many to risky assets in order to wait out and preserve their savings most profitably until economic stability is restored. Based on the performance of the entire period since 1984, America’s GDP is expected to skyrocket. Experts from the Federal Reserve System predict such an increase of 6.5%. Particularly demand for risky assets is based on successful vaccination among the population, massive fiscal stimulus, positive dynamics of macro indicators and growing data on quarterly reports of influential manufacturers in the country.
At the Congress meeting timed to coincide with the 100-day official government of the state, 46 the President of America put forward a draft investment plan from the state, totaling 4.1 trillion in dollar terms. $ 1.8 trillion will be directed to support American families, the rest will be invested in infrastructure development.
Head of the European Central Bank in St.In her speech, a positive moment was highlighted that an accelerated process of economic revival is expected in the second half of this year, since universal vaccination is progressing successfully in the European Union.
Article provided by Forex broker Weltrade