Fed may be able to move more quickly | 12 January 2022

12 January 2022, USD/JPY

Fed may be able to move more quickly

USDJPY trading plan:

The Federal Reserve may need to raise interest rates at least three times this year and begin running down its balance sheet to respond to a tight labor market and inflation that is persistently high and more broad-based, Cleveland Fed President Loretta Mester said. Fed officials are expected to begin debating strategies for removing the accommodation provided during the pandemic when they gather for their next policy meeting in two weeks. That involves raising interest rates and creating a plan for reducing the central bank's more than $8 trillion in bond holdings. Mester said she thinks the Fed may be able to move more quickly when running down its balance sheet now than it has in the past because the economy is strong and its bond holdings are larger than they were previously.

Investment idea: buy 115.16 and take profit 115.71.

David Johnson
Analyst of «FreshForex» company
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