The Fed needs to move aggressively | 23 March 2022

23 March 2022, EUR/USD

EURUSD trading plan:

"The Fed needs to move aggressively to keep inflation under control," St. Louis Fed President James Bullard told, repeating his call for the central bank to raise its benchmark overnight interest rate above 3% this year. "Faster is better," he said. Bullard, who dissented on the Fed's decision last week to raise the federal funds rate by just a quarter of a percentage point from the near-zero level, has made this same point before. But his view appears to be gaining traction. Fed Chair Jerome Powell said the central bank must move "expeditiously" to raise rates. When asked what would prevent the central bank raising rates by half a percentage point at the May 3-4 policy meeting, he responded: "Nothing." This is a positive signal for the dollar.

Investment idea: sell 1.1044 and take profit 1.0950.

David Johnson
Analyst of «FreshForex» company
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