- Powell starts from a strong message on inflation
- inflation needs to be brought down to ensure lasting economic growth
- 50 or 75bp hikes most likely at following meetings
- further inflation surprises are possible
- economy strong, well positioned for tightening
The message is clear - no worries on growth side and clear focus on fighting inflation, at least for now. This increases odds of actually taking control of inflation at some point but also risks dragging economy into recession as (and in contrast to what Powell says) the economy already starts showing some cracks.
Sentiment reversed after the statement, the EURUSD currency pair erased early losses and is rising, US indices are also move sharply higher. Source: xStation5
Economic Calendar - Global series of industrial PMI indicators and tech giants' results
📊Morning Wrap: Oil falls after Qatar talks. China injects liquidity, while the US prepares for elections.
💥Daily Summary: Tech Sector Crash on Wall Street and Historic Attack on Binance
Gold prices drop sharply at the end of October. The collapse of the safe-haven myth or a search for liquidity?