- Dow Jones is trading near 44,380, while investors are waiting for federal reserve meetings in January.
- Federal politicians emphasized patience and removing the language about the progress of inflation in their last statement.
- US President Donald Trump announced 25 % on cars, pharmaceutical preparations, and semi -conductors.
The industrial average (DJIA), which measures the performance of 30 as a large penis US (United States) shares, under pressure, is trading around 44380. Investors are waiting for Federal Reserve Recitations (FARED) January to obtain an insight into the central bank’s position on inflation and interest Rates. The weakest market feelings after US President Donald Trump announced new definitions on the main imports.
Daily Digest Market Movers: Download Jones sliding with the passage of FED on the horizon
- The Federal Reserve remained the interest rates fixed at 4.25 % -4.50 %, but it removed the language indicating the progress of inflation.
- Federal reserve officials have repeated that patience is necessary before making any amendments to policy, while emphasizing the need for more data.
- The President of Philadelphia, President Patrick Harcker and President of Atlanta, Rafael Bustic, pointed to the rush of prices.
- Elsewhere, President Donald Trump announced 25 % of the customs tariffs on cars, pharmaceutical preparations and semi -conductors, which are valid by April.
- In addition, commercial tensions increased with the interruption of peace talks in the United States-Russia from Ukraine, where Trump blamed Ukraine for lack of progress that contributed to the mood of the sour market.
- Market participants are still cautious in the issuance of the minutes of the Federal Open Market Committee (FOMC).
DJIA Technical Analysis
Dow Jones fell down SMA for 20 days at 44,580, which enhances the declining momentum. The sellers acquire a ground with uncertainty Federal Reserve Political and trade tensions weigh feelings. The continuous step of less than 44,350 can accelerate the decrease while buyers need a recovery of more than 44,600 to restore control.
Fed questions and answers
The monetary policy in the United States is formed by the Federal Reserve (Fed). The Federal Reserve has two states: to achieve price stability and enhance full employment. Its primary performance to achieve these goals is to adjust interest rates. When prices rise very quickly and inflation is 2 % higher than the Federal Reserve goal, it raises interest rates, which increases borrowing costs throughout the economy. This leads to the most powerful USD (USD) because it makes the United States a more attractive place for international investors to stop their money. When inflation decreases to less than 2 % or the unemployment rate is very high, the Federal Reserve may reduce interest rates to encourage borrowing, which weighs on the green back.
The Federal Reserve (Fed) holds eight political meetings annually, as the FOOC Open Market Committee (FOMC) evaluates economic conditions and takes monetary policy decisions. FOMC attends twelve officials of the Federal Reserve-seven members of the Governor’s Council, President of the Federal Reserve in New York, and four regional regional regional presidents, who serve for one year on a roundabout.
In extreme situations, the Federal Reserve may resort to a policy called quantitative mitigation (QE). QE is the process that the Federal Reserve increases significantly from the flow of credit in a suspended financial system. It is a non -standard policy scale used during crises or when inflation is very low. The Federal Reserve’s favorite federal weapon was during the great financial crisis in 2008. It includes the printing of the Federal Reserve more than dollars and their use to buy high -quality bonds from financial institutions. QE usually weakens the US dollar.
The quantitative tightening (QT) is the reverse process of QE, as the Federal Reserve stops buying bonds from financial institutions and the manager does not re -invest from mature bonds, to buy new bonds. It is usually positive for the value of the US dollar.
2025-02-19 18:06:45