Powell: normalization of the Fed’s policy won’t hurt financial markets

Powell: normalization of the Fed’s policy won’t hurt financial markets

The Federal Reserve System has made it clear to the financial markets that it’s on the verge of raising the benchmark interest rate step by step, and market participants are probably not surprised by the actions of the US key financial institution. That’s what the head of the Federal Reserve, Jerome Powell pointed out.

The statesman told that the normalization of the Fed's policy is taking place without devastating damage to the financial markets. Moreover, the expectations of traders as for the future policy of the US key bank seem to be in tune with the expectations of the bank’s management.

He added that the overall situation in the economy generally meets expectations, and the financial markets won’t be surprised by the bank’s moves.

The Fed lifted the rate up to six times since December 2015, and each time by 25 basis points. The last time it was increased in March this year - up to 1.5-1.75% per annum, and the management of the key US bank made it clear that they expect two more hikes in 2018.

The gradual soar in the rate helped to maintain the Fed's stimulating policy that backed the surge of employment as well as economic recovery in the United States, and also contributed to a gradual leap in inflation.

Powell is assured that developing countries will easily cope with the gradual normalization of monetary policy in America.

From his point of view In his view, the role of the American monetary policy as a factor affecting global financial conditions as well as capital flows is often overestimated. Moreover, crucial factors in this regard are also the rates of global economic surge and also prices for raw materials.

The Fed will do its best to avert destabilizing markets, bringing its strategy to market participants as transparently and clearly as possible, as Powell stressed.


Latest news

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera