Because of the stern comments of Federal Reserve Chairman Jerome Powell, the dollar hit its highest level in 20 years, as he talked about continuing to raise interest rates to reach the inflation target of 2%.
According to Arabiya Net, for his part, IG financial analyst Montaser Safi El-Din said that Jerome Powell's speech was short and clear that there will be a rise in the interest rate, but it will stop for a longer period, against market expectations of a rate cut at the beginning of next year.
Safi Al-Din added, in an interview with Al-Arabiya, today, Monday, that Jerome Powell mentioned the word inflation 50 times, while he mentioned jobs and the economy below 10 times, and therefore there will be a sacrifice of jobs and the economy at the expense of inflation, pointing to the increasing expectations of the Federal Reserve increasing the interest rate by 75 points. Base next September.
The dollar consolidated its gains as a safe haven after warnings by Powell that addressing inflation would be painful for US households and companies.
The two-year US Treasury yield rose in the wake of Jerome Powell's recent comments, reaching 3.49%, the highest level since late 2007, while the 10-year yield was stable at 3.12%, deepening the yield curve inversion.
