Fed will need to raise rates | 24 Febrero 2022

24 Febrero 2022, USD/JPY

Fed will need to raise rates

USDJPY trading plan:

San Francisco Federal Reserve Bank President Mary Daly said, she expects the U.S. central bank will need to raise rates at least four times this year, and likely more, to stop high inflation from getting worse. "There is broad agreement that inflation is too high and the policy rate is too low," Daly said at the Los Angeles World Affairs Council & Town Hall, given that the economy is adding jobs and growing strong. The geopolitical situation with Ukraine and Russia adds to uncertainty, she said, but does not disrupt the Fed's plans to lift off in March. Once the Fed has begun raising rates, she said, it will then begin to reduce its $9 trillion balance sheet, a process that will further tighten policy, and work to slow inflation. Financial conditions are more accommodative now than they should be, given the strength of the economy, she said.

Investment idea: range 114.40 -115.10.

David Johnson
Analyst of «FreshForex» company
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