Fed Is On The Radar Of The Markets

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1 year ago

The Fed entered the markets' radar, replacing the Russia-Ukraine operation.

Markets are pricing in that the Fed will raise interest rates by 50 basis points at its May 3-4 meeting.

Support for this expectation came from the Chairman of the Federal Reserve, Jerome Powell.

Powell announced that a 50 basis point increase will be "on the table" at the Fed's meeting on May 3-4.

European Central Bank (ECB) President Christine Lagarde stated that there is a strong possibility that the asset purchase program will be terminated at the beginning of the third quarter of the year and that interest rates will be increased before the end of the year.

Central banks accepted the inflation problem.

It is stated that the struggle will not be easy, intervention should be made, and if they fail, the famine economy and stagflation process may come into play along with food inflation.

What was real and not surprising?

Abundant liquidity = Inflation

Plenty of free money = hyperinflation

Central banks, which have been competing to lower interest rates for 2 years, are now racing to increase interest rates.

Will they be able to tidy up? It sure won't be easy!

The sales in the global stock markets are the harbinger of this.

The statements made by the IMF are also not encouraging.

International Monetary Fund (IMF) President Kristalina Georgieva said that the Russia-Ukraine conflict weakened the economic expectations of the whole country, and high inflation was a clear threat to the global economy.

While risks and interests are increasing, the dollar and dollar yields are gaining value, while everything is losing value.

Then the investor should also keep those investment instruments that have lost excessive value or continue to be suppressed on their radar.

While the dollar index (DXY) has risen to the level of 101 and declined to the level of 1.08 in EUR/USD and 1.2837 in GBP/USD, the opportunity in parities should also be on its radar.

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1 year ago