– Price growth supports the prospects for 2% inflation in the long term.
– The country business remains deeply worried about the risk of the war and, in particular, likely delays in the supply of goods or raw materials from China.
– The Fed is likely to proceed to a cardinal change in its monetary policy only when the central bank’s balance sheets drop significantly.
– Inflation over 2% can help to keep inflation expectations high.
– In this line of thought, a number of Fed members are of the opinion that retaining interest rates may help raise inflation.
USD reacted with a slight increase against the major currencies, but in the minutes following the FOMC report it returned almost all profits. Investors expect new job data tomorrow.
Trader Petar Milanov