US dollar fell after the chapter of the Fed

dollar fell on Tuesday, and stock indices switched to growth after the speech of the head of the Fed Powell in Congress. The head of the regulator said nothing about the timing of the first raising rates. On Tuesday, the United States held a hearing on the reassignment of the current head of the Fed Jerome Powell for the second term.

In his speech, Powell stated that “the economy no longer needs aggressive monetary stimulation measures,” therefore it is time for the central bank to start the normalization of its policy. At the same time Added that the return to normal politics will be long.

Markets carefully tracked this performance, expecting hints for the first rates of rates. However, the head of the Fed disappointed them, stating that “Fed did not accept any decisions about making changes to monetary policy.” The Fed also did not accept any decisions on the reduction of the Balance of the Central Bank.

As part of the December meeting of the Fed Powell and his FOMC colleagues, they planned three rates of 0.25% for 2022, and last week Sounded that this process can begin in March. The US dollar is weakened, as the markets have already taken into account the fed policy tightening. That is why the dollar stalled in December, although the market was constantly talking about the tightening of the Fed Policy, they believe in Silicon Valley Bank.

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