The Asian markets are trading with gains after Wall Street stock markets last night rose to a record against the background of Janet Yellen’s speech in the US Senate. The Federal Reserve Chairman said that if the trend of improvement in the US economy would be appropriate, once again she will raise the interest rates.
The Fed raised yesterday interest rates by 0.25%.
In a statement issued by the central bank, he expected a further strengthening of the labor market next year and because he’s not expected an inflationary pressures, and it is possible to increase the pace of interest rate increases up to 3 increases a year.
Yesterday, Wall Street stock markets returned to break records and the Dow Jones Industrial Average closed at 20,000 points threshold, in light of the opening of the two-day sitting of the Federal Reserve after which the central bank is expected to announce the increase in interest rates the world’s largest economy.
Wall Street opened on a negative trend on the first trading week before the opening meeting of the Open Market Committee of the Federal Reserve (FOMC) tomorrow, when on Thursday the bank is expected to announce the first rate rise in 2016 to 0.5% -0.75%.
The chairman of the US Federal Reserve, Janet Yellen said yesterday in her testimony before the US Congress tha the election of Donald Trump to be the president of the United States has not changed the plans of the Federal Reserve to raise interest rates “relatively soon”
Yellen also said that the economic data currently justify higher interest rates and that if there would be no dramatic changes, the interest rates will continue to rise gradually after that.
According to “beige book” – the periodic report of the Federal Reserve on the state of the US economy which was published yesterday, the US economy continued to grow at a moderate pace mostly late August to early October.
The protocol the last meeting of the Federal Reserve which released yesterday included evidence that central bank decision makers are in no hurry to raise interest rates in the US.
Yesterday, the indices recorded the sharpest daily fall this month in view of the backdrop of a disappointing opening of the quarterly earnings season on Wall Street.
The US dollar strengthened yesterday and has reached a two months high, as when he broke a significant resistance level, because of the increasing expectations that the Federal Reserve will raise US interest rates by end of the year.
The US dollar strengthened by 1.1% against the Japanese yen.
The US dollar climbed against the British pound by 0.8% to US $ 1.2736 a pound, after earlier it been strengthened exchange of 1.2722 dollars to the pound.
It’s the highest level of the US versus the British currency since 1985.
The pound weakened in the last two days after the head of a British government Theresa May announced on Article 50 of the exit the uk from the European Union, and this will start within a few months.
The US dollar climbed by 0.1% against the Euro of 1.1199 dollars to the euro.
Yellen to Say Good Things About Wall Street in her Testimony
Federal Reserve Chair Janet Yellen will paint a rosy picture of Wall Street’s, even though her agency ruled this year that five of the biggest U.S. banks couldn’t fail without dragging down the financial system.
A positive opening today in trading on Wall Street, in light of the convening of the open market committee (FOMC) of the Federal Reserve.
The committee will discuss the issue of US monetary policy,and tomorrow at 19:00 (UK time) she will announce about its decision.