Powell’s opening statement: The economy does not work for anyone without price stability

  • We are changing our policy rate “meaningfully”
  • The US economy has slowed from 2021
  • Price pressures are evident across a wide range of goods and services
  • Very attentive to the dangers inflation
  • The speed of interest rate hikes will continue to depend on incoming data and expectations
  • At some point, we will slow down the pace of the increases while we assess the impact of previous increases
  • Decisions will be made at each meeting individually
  • Restoring price stability requires stabilizing prices at restrictive levels “for some time”
  • Historic record warns of early interest rate cuts
  • A bullet chart is not a plan or commitment
  • We’ll keep doing that until the job is done

The U.S. dollar

U.S. dollar

The US dollar, (symbol $, symbol USD) is the paper currency of the United States of America (USD) and the most traded currency globally. It was introduced to the United States in the late 1700s, with banknotes not being distributed until the following century. The US dollar, also informally known as the dollar, is the world’s number one reserve currency, in large part due to the importance of the US economy on the world stage. Once the dollar was backed by gold (in the 20th century), it is now a purely fiat currency, i.e. not backed by a physical commodity. The previous gold standard aligned with the US dollar made gold and silver the legal tender currency of the United States of America, ensuring that 1 US dollar could be converted into a gram and a half of pure 24 karat gold. However, President Richard Nixon eventually de-pegged gold in 1971. Since the gold standard was cut, the US dollar has become the world’s number one reserve currency, meaning foreign countries have large amounts of their cash reserves in US dollars, representing what Approximately 65% ​​of the world’s foreign exchange reserves. They are traded in pairs. Any retail broker offers exposure to the US dollar in many exchange pairs, due to its popularity and liquidity. The US dollar participates in the majority of the most traded forex pairs, such as EUR/USD, USD/JPY, GBP/USD and USD/CHF, known as the “Four Major Pairs” and “Commodity Pairs”, i.e. AUD/USD, USD/CAD and NZD / USD.

The US dollar, (symbol $, symbol USD) is the paper currency of the United States of America (USD) and the most traded currency globally. It was introduced to the United States in the late 1700s, with banknotes not being distributed until the following century. The US dollar, also informally known as the dollar, is the world’s number one reserve currency, in large part due to the importance of the US economy on the world stage. Once the dollar was backed by gold (in the 20th century), it is now a purely fiat currency, i.e. not backed by a physical commodity. The previous gold standard aligned with the US dollar made gold and silver the legal tender currency of the United States of America, ensuring that 1 US dollar could be converted into a gram and a half of pure 24 karat gold. However, President Richard Nixon eventually de-pegged gold in 1971. Since the gold standard was cut, the US dollar has become the world’s number one reserve currency, meaning foreign countries have large amounts of their cash reserves in US dollars, representing what Approximately 65% ​​of the world’s foreign exchange reserves. They are traded in pairs. Any retail broker offers exposure to the US dollar in many exchange pairs, due to its popularity and liquidity. The US dollar participates in the majority of the most traded forex pairs, such as EUR/USD, USD/JPY, GBP/USD and USD/CHF, known as the “Four Major Pairs” and “Commodity Pairs”, i.e. AUD/USD, USD/CAD and NZD / USD.
Read this term Reversing the initial rally across the board as the USD/JPY is now below pre-FOMC levels. The tone wasn’t quite as strong as Jackson Hole, but the inversion might also reflect the show in Old Bonds.

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