Awaiting The Fed Meeting, This "Thing" Needs To Be Given Attention By "Traders"!

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 The Federal Reserve on Thursday is expected to begin ending the simple monetary policy implemented during the pandemic and will step up efforts to fight very high inflation by raising interest rates.


The shift began with expectations of a quarterly percentage point increase in the U.S. central bank’s overnight interest rate benchmark in anticipation of what the Fed would do to curb rising prices at the fastest rate in 40 years.


Still, the urgency surrounding this week’s Fed policy meeting has escalated as inflation shows no signs of abating and may even rise further following tensions between Russia and Ukraine that sparked a spike in oil prices this month.



Meeting times are more focused as the Fed will provide first concrete guidance on how economic projections, inflation and interest rates have influenced policymakers.


Fed Chairman Jerome Powell, speaking to lawmakers in Congress earlier this month noted that the government can bring inflation back under control. However, he acknowledged that the economic situation at the moment is volatile.


For example, Powell is expected to balance the need to raise rates and curb rising inflation more in line with the need to avoid an economic crisis. Such a rapid rise in interest rates would be considered if it did not pose a risk to an economic recession.


The Fed meeting is expected to take place at 2 a.m. on Thursday. The focus is also on how fast the inflation rate will increase.

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