Violent fluctuations and shocking data terrify everyone..
The week’s trading was confined to economic data that came mostly surprising and outside the range of expectations. Even the results of major companies such as US Target (NYSE:TGT) shocked the market’s expectations, but the most prominent event that the markets were anticipating was the minutes of the US Federal Reserve meeting.
Although the Fed minutes inspired the dollar to strength and robbed safe havens such as gold, it seems that the Fed will keep a close eye on new data and developments, before deciding to determine the next step, which ranges between 50 to 75 basis points.
The Fed officials’ assurances of the continuation of efforts to combat inflation to reach the Fed’s target at inflation rates of around 2%, while it is now recording the highest rates in 40 years.
Federal Reserve officials said in their last meeting last July that the policy of raising US interest rates should continue until inflation slows sharply from its current levels.
Fed officials added that the Fed may move to slow the rate hike at some point, while acknowledging downside risks to GDP growth.
The minutes of the Federal Reserve from its meeting held last month showed that members of the Open Market Committee believe that it is required to move interest rates to restricted levels, which means high enough levels to slow economic growth.
