The head of the Fed, Jerome Powell, instilled confidence in the dollar

US dollar sharply grew on Wednesday immediately after the start of the press conference of the head of the Federal Reserve Power Powell. The initial reaction to the Fed Statement was the weakening of the American currency. The Fed is expected to increase the rate by 0.75% and hinted to slow down the pace of its increase. According to the results of a two-day meeting, the US Federal Reserve increased the key rate by 75 basic points-from 3-3.25% to 3.75-4%, which is the highest level from January 2008. This is the fourth consecutive increase for such a value. The vote by decision was unanimous.

FOMC said that “will take into account the cumulative volume of tightening of monetary policy and the delayed effects of the influence of monetary policy on economic activity and inflation.”

Changes in the formulations of the stamination occurred after recent reports that some officials are increasingly worried about the rate of increase in interest rates and their influence on the economy. The Central Bank also said that it is necessary to continue to increase the rates until they become “quite limiting.”

“Time for The slowdown in the rate of increase in the rate may occur in December-February. We will discuss this issue at the next meeting, the decision has not yet been made, ”said the head of the Fed Jar Powell at a press conference. The issue of slowing down rates of raising rates was already discussed at this meeting, he noted.

on the other hand,” now very prematurely Think about a pause. The need to increase bets still exists, and we want to achieve real positive bets, ”said the head of the Fed. He promised to present by December by December “The updated idea of ​​where the bets should be moved.” I strengthened the position of the dollar and Powell’s remark that “the final level of interest rates will be higher than previously expected,” according to him, the data indicate. At the same time, these futures for the rate indicate a slowdown in the rate of its increase at the December meeting. The probability of increasing the rate by 0.50% increased to 56.8% from 44.5% a day earlier.