© Reuters
Investing.com – Federal Reserve Chair Mary Daley spoke out Saturday, saying the Fed will likely continue to hold Tight monetary policy for a longer period of time.
Daley added that this is not a choice of the Fed, but a necessity.
The Fed is now under the weight of the most positive economic data, which shows that the US economy has not slowed down, its inflation has not decreased, and its labor market remains much stronger than expected.
Although the market still believes that the Fed will raise interest rates by 25 basis points only in the month of March.=, there are growing expectations from the market that the final interest rates will exceed 5.50% and may reach 6% by the end of the year, if inflation continues to be strong.
Before the Fed meeting, the market awaits important fateful data, including the jobs report issued next Friday, preceded by the testimony of the Federal Reserve Chairman, Jerome Powell, on next Tuesday and Wednesday.
The market is also waiting for the fateful inflation report for the month of March before the interest rate decision on the 22nd of this month.
The markets changed strongly during the past week, after the statements of Federal Reserve member Raphael Bostick, who said that the Fed will not raise interest rates by 50 basis points, and we must wait because the repercussions of raising interest rates have not yet appeared on the economy and are expected to appear in the spring.
The US markets rose on the impact of Bostick’s comments, to close the first week out of 4 weeks positively. It also rose strongly to return to the levels of mid-January, as well as the American decline, but it remains above 104 levels, maintaining its important support points.
