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Interest rates rise to a 22-year high: How long can this last?
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The Fed is set to raise interest rates by a quarter percentage point on Wednesday to a 22-year high, and Fed staff is no longer forecasting もっと見る
The Fed is set to raise interest rates by a quarter percentage point on Wednesday to a 22-year high, and Fed staff is no longer forecasting a recession. Interest rate increases slow the economy through financial markets by lowering asset prices and raising the cost of borrowing. Most Fed officials in June penciled in two more rate rises this year. Investors will heavily parse Powell's press conference for signs that the central bank's next meeting is "live," meaning a rate increase will be strongly considered at the Sept. 19-20 meeting.

💡What to watch:
The consumer price index for core inflation, which excludes volatile food and energy prices, posted its smallest monthly increase in more than two years in June, rising less than 0.2% from the prior month.

The US dollar is weakening across the board as market participants await the Fed's policy decision. The USD index decreased by 0.2% and lost to 100.817. Gold prices are rising XAU/USD has climbed to weekly highs above $1,974.

Bond yields dropped, with the two-year US yields, sensitive to imminent Fed moves, falling to 4.84%.

🎙️Q:
1. What's the pressure on FOMC meetings?
2. How will it impact your investing strategies?
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