“Federal financial policy, debt, does not affect our policy decisions month by month,” said the president of the Federal Reserve (FED) Jerome Powell During his testimony about the semiannual monetary policy report before the Senate Banking Committee on Wednesday.
Key points
“Broad reservations allow banks to continue lending in moments of stress.”
“The return to scarce reserves would not save money.”
“Using broad reserves would have been for years.”
“Huge benefits of having the dollar as a global reserve currency.”
“The dollar is still the reserve currency, it is a lasting balance, it is expected to last a long time.”
“The bond market is working well.”
“Inflation expectations have decreased a bit since April.”
“On the weakness of the USD, markets have been digesting a set of unusually challenging circumstances.”
Market reaction
These comments do not seem to have a remarkable impact on the valuation of the US dollar (USD). At the time of publication, the USD index was practically unchanged at 98.00.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
