© Reuters
Investing.com – He issued a statement a few minutes ago in which he announced that the interest rate would be fixed at 5.5%, with a clear indication that it is the maximum interest rate and that there will be no attempts to raise it in the coming period unless necessary.
The members of the Fed also announced their future expectations for the interest rate, which revealed a 3-time cut in 2024 (3 cuts), falling by an average of 0.75%, then the cut will continue by 100 basis points in 2025 and the interest rate will fall in 2026 to the range of 3% – 2%. These expectations helped the US decline and the recovery of gold, the stock market and digital currencies.
Within minutes, US Federal Reserve Chairman Jerome Powell will appear at the press conference to further clarify the US Federal Reserve’s movement in the coming years.
For more details:
Why did the markets move?
- Fed members expected to cut interest rates by 0.75% in 2024
- Fed members expect a decline in the inflation rate in 2024
- Fed members expect a slowdown in the US economy’s GDP in 2024
- Fed members expect inflation to fall to 2.8% by the end of 2023 and to reach 2.4% by the end of 2024, 2.1% by the end of 2025, and 2% in 2026.
- Fed members expect the unemployment rate to rise to 3.8% at the end of 2023 and to reach 4.1% in the coming years.
Markets now
The US dollar index fell by 0.51% to 102.9 after the release of the US Federal Reserve statement, falling below 103 against a basket of foreign currencies.
While futures contracts rose by 1.28% to $2018.75 per ounce, and the price of gold (spot contracts) rose to $2003.1 per ounce.
Ten-year yields fell by 3% to 4.083%, and two-year Treasury bond yields also fell by 3.34% to 4.573%.
Prices rose by 1.45% to $69.61 per barrel, and also rose by 1.56% to $74.35 per barrel.
US market indices are now rising, with 0.65% rising by 0.6% and the Nasdaq rising by 0.58%.
The price has risen by 2.77% at the present time, with the largest digital currency trading at $42,444.9 per token.
2023-12-13 19:20:00
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