"Those are the things we'd look at if we wanted to stop going up and eventually start going down."
Compass Cambodia report - The Federal Reserve's fresh monetary policy promises reassured investors who had been worried by the bank's expectations of an earlier-than-expected hike in interest rates last week. Asian markets rose on June 23rd, extending a global rally.
Wall Street fell on Friday last week, and Asia fell on Monday, as traders projected a rate hike next year as regulators try to avoid overheating and increasing inflation as the world's largest economy recovers from its 2020 recession.
Fears that the ultra-loose measures imposed during the pandemic's peak will be phased out have plagued trading floors for months, slowing a more than year-long market recovery. Analysts observed, however, that the Fed's repeated promises to keep the policies in place until unemployment is under control and inflation is persistently high appear to be taking effect.
The chairman of the Federal Reserve, Jerome Powell, spoke out on Wednesday to reassure the public. He told MPs that "A significant part, or perhaps all of the inflation overshoot comes from categories directly touched by the reopening of the economy, such as secondhand automobiles and trucks,"
"Those are the things we'd look at if we wanted to stop going up and eventually start going down."
"We will not raise interest rates preemptively because we believe employment is too high, because we feared the probable advent of inflation," he said, adding that price increases have been higher than expected and may remain longer than expected.
"We'll hold off until we see genuine evidence of inflation or other imbalances."
Source: Compass Cambodia comprehensive arrangement
Editor: Malinda Chief Editor: Sunnie General in Chief/Executive Producer: Nicole
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