Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
FRS has lowered the stakes
Stock Market

FRS has lowered the bet: review of the new strategy from Jerry Powell

01.08.2020
2 min read

FRS lowered the rate: consequences and position of other countries

The other day the management made an official statement that the FRS cut the rate by 0.25%, now it is 1.75-2%. This position was explained by Jerome Powell with measures to minimize the impact of existing risks, which include trade conflict and global slowdown in economic growth.
Federal Reserve experts assess the state of the US economy as positive. They note an increase in spending in the capital segment, activity on the part of consumers, a decrease in the unemployment rate.
Lower interest rates indicate that the monetary policy is about to be revised in the nearest future, which was introduced earlier. This can be seen from the optimistic statistics. Federal Reserve specialists conducted a large-scale analysis, which showed the number of issued construction permits, it was a record for 12 years. In addition, the results of the industrial sector, where there is a high level of activity, were presented. This is confirmed by the results of trading on financial markets, where the S&P500 index grew by 0.03%, compensating for losses by 1%.
Despite the positive forecasts, there are problems within the FRS itself. Among the 10 members who voted in favor of changing the rate, three did not share the majority opinion. Two people voted against the adjustments, one wanted a 50 point cut. There was also inconsistency in the report, many sections were controversial and the FRS future course was not fully understood. One of the reasons for this situation is the uncertainty in solving the trade conflict between the US and China.

FRS has lowered the stakes

The opinion of the Federal Reserve system influences the trends and policies of central banks of different countries. A vivid example of this is the statement of the Bank of Japan, which decided not to change the rate of monetary policy. Such processes have affected the stock market performance. There was an increase in the value of bonds, the stock quotations increased.
The next step, which will shed light on the future prospects of the world economy, will be the meeting of the Swiss National Bank and the Bank of Great Britain. The position of these reputable financial institutions is not yet clear. In case they do not want to carry out monetary easing processes, some fluctuations may start on stock markets. Though such a situation will be far from panic, and quotations and main indexes will be affected insignificantly.
Foreign exchange markets deserve special attention. USDJPY has already fallen by 0.5% after the Bank of Japan announced. Now EURUSD is fluctuating within 1.1000, and the indicators have been practically unchanged for 2 weeks. GBPUSD is keeping the level at 1.2500, but with an upward trend. The currency rates of other developing countries are slightly increasing. The Australian dollar and the renminbi have not changed yet. The decline is observed in the international logistics company FedEx. For the first time in 10 years the volumes of their revenues reached the minimum values.

Tags: Stock Market
0
Previous Post US economic growth: projections and trends Next Post Bloomberg Agency: GBP cost is decreasing

You Might Also Like

The European Union created a fund
Stock Market
The European Union created a fund of 5 billion euros to help businesses
13.05.2022
broker's bankruptcy
Stock Market
How dangerous a broker’s bankruptcy can be for a client
26.07.2022
Bank of England
Stock Market
Bank of England announced the purchase of government bonds
24.11.2022
billionaire woman
Stock Market
First female billionaire from Africa: professional plans related to the Russian market
31.08.2020
The Swiss financial regulator
Stock Market
Swiss financial regulator allows cryptocurrency fund activity
12.06.2022
Yahoo
Stock Market
Search engine Yahoo acquired a 25% stake in the advertising company Taboola
12.02.2023

Recent Posts

  • 1Margarete Steiff teddy bear
    Margarete Steiff was the seamstress who gave the world Teddy Bear
    29.11.2023
  • 2Huawei
    History of the Chinese corporation Huawei and its achievements
    27.11.2023
  • 3order block
    Order block and its use for stock exchange trading
    25.11.2023
  • 4Bahrain and the UK
    Bahrain and the UK intensify cooperation
    23.11.2023
  • 5Genesis MedTech IPO
    Genesis MedTech plans to float its shares on the Hong Kong Stock Exchange
    21.11.2023

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

India's steel imports from China
India’s steel imports from China hurt local producers
01.12.2023
Margarete Steiff teddy bear
Margarete Steiff was the seamstress who gave the world Teddy Bear
29.11.2023
Huawei
History of the Chinese corporation Huawei and its achievements
27.11.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Ruble exchange rate fluctuation: how to preserve savings in an unstable national currency
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics