Today on Thursday (June 30), the us dollar opened at 105.11 and closed at 105.10 yesterday. So far, the highest has touched 105.16 and the lowest has been 105.05. Temporarily reported 105.13, an increase of 0.02%. The British pound was temporarily reported at 1.2121, a decrease of 0.03%; the Canadian dollar was temporarily reported at 0.7753, an increase of 0.02%.
At the beginning of the Asian market on June 30, spot gold traded around 1817.80. Due to the resistance caused by aggressive interest rate hikes and the influence of safe-haven buying driven by the risk of economic recession, the trend of gold was stalemate; the dollar was trading around 105.10, the Federal Reserve Chairman Powell said the biggest risk to the U.S. economy is persistently high inflation.
The U.S. recession will finally prevent the fed from aggressively tightening policy, with bond markets starting Wednesday pricing in a 50 basis point rate cut sometime in 2023.
Swap contracts tied to next year ‘s Fed meeting show traders expect rates to be close to 3.11% in December, about 50 basis points below their peak rate forecast of 3.62% in March.
Both Powell and Bailey said the central bank ‘s “priority” right now is to keep inflation down, and neither of them ruled out more substantial action at the summer meeting on interest rates. Powell said at the June FOMC press conference that interest rates will be raised by at least 50 basis points in July, and it is not impossible to raise interest rates by 75 basis points again.
Federal Reserve Chairman Jerome Powell reiterated on Wednesday that the central bank is raising interest rates quickly with the goal of “tightening money fairly quickly ” at a level where borrowing costs are limiting rather than stimulating economic growth. Powell also expressed confidence that the economy will avoid a recession, warning that if high inflation is not addressed and allowed to persist, the result will be even more damage to the economy.
According to Dutta, director of U.S. economic research at Renaissance Macro Research LLC, the Fed is effectively arguing that “policy mistakes that lead to a recession are preferable to mistakes that lead to higher inflation expectations.”