After the decision to install interest on the US dollar, gold prices fell during these moments of Thursday’s trading to the lowest level in three months with the rise of the dollar, as the US Federal Reserve indicated that it would raise interest rates more this year, as Jerome Powell linked the process of raising interest rates to the upcoming economic data. It will determine the rate of interest rate hike
As the dollar plays the role it plays in the global financial system for very good reasons that no other country can replicate, including China, noting that America has deep open financial markets, strong legal rule, and the absence of capital controls that no country can replicate, as we will not be one of It is easy for any country to devise a way to get around the dollar
Also, the reserve status of the US dollar has been gradually eroding for two decades and witnessed a sharp decline in 2022, although its strength in international trade remains unchallenged, as the main problem for the Federal Reserve is that the core CPI remains high.
However, the market believes that the Fed has not yet finished the tightening cycle, so the interest rate hike expectations return to increase again for the month of July, and the interest rate reduction expectations increase by the end of this year, and the rate of these expectations currently reaches approximately 70 percent.
The most prominent of what came from Jerome Powell’s statements yesterday evening:
The Fed intends to raise rates again later this year
Fixing interest allows evaluating the results of monetary policy
Officials see core inflation at 3.9% by the end of 2023, and 2.6% by the end of 2024.
It is appropriate to raise interest moderately
