Powell opening statement: The economy does not work for anyone without price stability


  • We move our key interest rate “targeted”
  • The US economy has slowed as of 2021
  • Price pressures across a wide range of goods and services
  • Very alert to risks of inflation
  • The pace of rate hikes will continue to depend on incoming data and the outlook
  • Eventually, we will slow the pace of hikes as we assess the impact of past rate hikes
  • Decisions are made from session to session
  • Restoring price stability requires keeping interest rates at restrictive levels for “some time”.
  • Historical records warn of premature rate cuts
  • The dot chart does not represent a plan or commitment
  • We’ll stay tuned until the job is done

That U.S. dollar

U.S. dollar

The US dollar (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most traded currency in the world. It was introduced to the United States in the late 18th century, with paper notes not being distributed until the following century. The US dollar, also known informally as the greenback, is the world’s primary reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a pure fiat currency ie not backed by any physical commodity. The then dollar-aligned gold standard made both gold and silver legal tender in the United States, with a guarantee that $1 could be converted into a gram and a half of pure 24k gold. However, the gold peg was eventually abolished by President Richard Nixon in 1971. Since the abolition of the gold standard, the US dollar has become the world’s number one reserve currency. This means that foreign nations hold large amounts of their cash reserves in USD, around 65% of the world’s foreign exchange reserves. How is the US Dollar traded? The US Dollar is traded in a variety of ways, primarily in the foreign exchange (Forex) market against other currencies; traded in pairs. Each retail broker offers USD exposure due to its popularity and liquidity in many exchange pairs. The USD is involved in most of the most commonly traded currency pairs, such as EUR/USD, USD/JPY, GBP/USD and USD/CHF, known as the “four majors” and the “commodity pairs”. ie AUD/USD, USD/CAD and NZD/USD.

The US dollar (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most traded currency in the world. It was introduced to the United States in the late 18th century, with paper notes not being distributed until the following century. The US dollar, also known informally as the greenback, is the world’s primary reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a pure fiat currency ie not backed by any physical commodity. The then dollar-aligned gold standard made both gold and silver legal tender in the United States, with a guarantee that $1 could be converted into a gram and a half of pure 24k gold. However, the gold peg was eventually abolished by President Richard Nixon in 1971. Since the abolition of the gold standard, the US dollar has become the world’s number one reserve currency. This means that foreign nations hold large amounts of their cash reserves in USD, around 65% of the world’s foreign exchange reserves. How is the US Dollar traded? The US Dollar is traded in a variety of ways, primarily in the foreign exchange (Forex) market against other currencies; traded in pairs. Each retail broker offers USD exposure due to its popularity and liquidity in many exchange pairs. The USD is involved in most of the most commonly traded currency pairs, such as EUR/USD, USD/JPY, GBP/USD and USD/CHF, known as the “four majors” and the “commodity pairs”. ie AUD/USD, USD/CAD and NZD/USD.
Read this term has reversed the initial rally across the board, with USD/JPY now below pre-FOMC levels. The tone wasn’t quite as energetic as Jackson Hole, but the reversal may also reflect supply in long-dated bonds.



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