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Rawd, not the basic state

“Federal Federal Policy, debt, does not affect the decisions of the month’s policy to the month” Jerome Powell He said during the testimony of the semi -annual monetary policy report before the Senate Banking Committee on Wednesday.

Main meals

“Wide reserves that enable banks to continue lending through tension.”

“Return to rare reserves will not save money.”

“It will take years to relax the abundant reserves.”

“Huge benefits of getting the dollar as a global backup currency.”

“The dollar is still a backup currency, it is a solid balance, it is expected to last for a long time.”

“The bond market works well.”

“The inflation forecast has decreased slightly from April.”

“On the weakness of the dollar, the markets digested a set of difficult conditions unusually.”

“Open to the possibility of the definitions that translate into inflation more or less than we think.”

“Watch to find out what appears in the measured inflation.”

“The direction of traveling to collect government data is related.”

“The definitions may be one time for inflation, but not the law of nature.”

“It will deal with the question carefully.”

“Do not decide what to do yet.”

“The duration can be the basic state, and you want to deal carefully when inflation does not return to 2 %

“If we make a mistake, people will pay the cost for a long time.”

“The uncertainty on the customs tariff reached its peak in April.”

“Companies feel a little better now.”

“Rawd, not the basic state.”

“If there is a recession, it will be fed in a difficult place.”

Market reaction

These comments do not seem to have a noticeable effect on the US dollar evaluation (USD). At the time of the press, the US dollar index did not change almost a day at 98.00.

Fed questions and answers

The monetary policy in the United States is formed by the Federal Reserve (Fed). The Federal Reserve has two states: to achieve price stability and enhance full employment. Its primary performance to achieve these goals is to adjust interest rates. When prices rise very quickly and inflation is 2 % higher than the Federal Reserve goal, it raises interest rates, which increases borrowing costs throughout the economy. This leads to the most powerful USD (USD) because it makes the United States a more attractive place for international investors to stop their money. When inflation decreases to less than 2 % or the unemployment rate is very high, the Federal Reserve may reduce interest rates to encourage borrowing, which weighs on the green back.

The Federal Reserve (Fed) holds eight political meetings annually, as the FOOC Open Market Committee (FOMC) evaluates economic conditions and takes monetary policy decisions. FOMC attends twelve officials of the Federal Reserve-the seven members of the Governor, the President of the Federal Reserve in New York, and four regional regional presidents, the remaining regional regional, who serve for one year on a roundabout.

In extreme situations, the Federal Reserve may resort to a policy called quantitative mitigation (QE). QE is the process that the Federal Reserve increases significantly from the flow of credit in a suspended financial system. It is a non -standard policy scale used during crises or when inflation is very low. The Federal Reserve’s favorite federal weapon was during the great financial crisis in 2008. It includes the printing of the Federal Reserve more than dollars and their use to buy high -quality bonds from financial institutions. QE usually weakens the US dollar.

The quantitative tightening (QT) is the reverse process of QE, as the Federal Reserve stops buying bonds from financial institutions and the manager does not re -invest from mature bonds, to buy new bonds. It is usually positive for the value of the US dollar.

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