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- The treasury yield is easy after Powell says that the federal reserve can be patient and that policy is still appropriate.
- DXY edges to 99.51 after peak in 99.63; Greenback under pressure from fallen returns.
- Powell warns the customs tariff that may hinder progress in the goals of the Federal Reserve, adding uncertainty about the path of politics.
The returns of the US Treasury fell to the entire curve, as it decreased on average by two and a half points to three basis points so far after it decreased more than seven basis points earlier. However, as feeding President Powell answered a question regarding feeding It tends to one side of the double mandate, he said it is extremely early.
The return decreased for 10 years to 4.27 % after President Powell reduced the urgency to work
The return of the Treasury Ministry in the United States decreases for 10 years to 4.271 % at the time of writing this report, which weighs to Greenback, which has so far declined from daily levels 99.63, as shown in US dollar Index (DXY).
The DXY, which tracks the Pak value performance against the currency basket, is 99.51, an increase of 0.12 %.
The Federal Reserve Chairman, Jerome Powell, said that the Federal Reserve is not in a hurry and can be patient. He pointed out that the current monetary policy is appropriate and that if things evolve, “we can move quickly as necessary.” “We will not make progress in our goals this year if the definitions remain,” he added.
Daily scheme for 10 years in the United States
Fed questions and answers
The monetary policy in the United States is formed by the Federal Reserve (Fed). The Federal Reserve has two states: to achieve price stability and enhance full employment. Its primary performance to achieve these goals is to adjust interest rates. When prices rise very quickly and inflation is 2 % higher than the Federal Reserve goal, it raises interest rates, which increases borrowing costs throughout the economy. This leads to the most powerful USD (USD) because it makes the United States a more attractive place for international investors to stop their money. When inflation decreases to less than 2 % or the unemployment rate is very high, the Federal Reserve may reduce interest rates to encourage borrowing, which weighs on the green back.
The Federal Reserve (Fed) holds eight political meetings annually, as the FOOC Open Market Committee (FOMC) evaluates economic conditions and takes monetary policy decisions. FOMC attends twelve officials of the Federal Reserve-the seven members of the Governor, the President of the Federal Reserve in New York, and four regional regional presidents, the remaining regional regional, who serve for one year on a roundabout.
In extreme situations, the Federal Reserve may resort to a policy called quantitative mitigation (QE). QE is the process that the Federal Reserve increases significantly from the flow of credit in a suspended financial system. It is a non -standard policy scale used during crises or when inflation is very low. The Federal Reserve’s favorite federal weapon was during the great financial crisis in 2008. It includes the printing of the Federal Reserve more than dollars and their use to buy high -quality bonds from financial institutions. QE usually weakens the US dollar.
The quantitative tightening (QT) is the reverse process of QE, as the Federal Reserve stops buying bonds from financial institutions and the manager does not re -invest from mature bonds, to buy new bonds. It is usually positive for the value of the US dollar.
