The Fed chairman has given the market a very important clue on 13 Dec 22.
At what level will he consider an interest rate cut?
He said “I wouldn't see us considering rate cuts until the committee is confident that inflation is moving down to 2% in a sustained way,” meaning only if CPI is heading nearing 2% then it is hopeful to see a rate cut.
I explained why interest rate or the Fed Fund Rate is heading up to at least 6.5% at the end of 2023.
Despite the rally on al major US markets yesterday, the Dollar has weakened again. The real danger will be with the continuous rise in interest rates and yet the dollar starts weakening, just like the pound last year. The dollar is trading lower in the past weeks, I am keeping watch on this closely. However, it is not all bad news, we can invest differently…
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