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Peter Davis

An writer at FOMOdrive

  • Jun 22, 2023
  • 2 min read

US Federal Reserve Chairman Powell collapsed the dollar again

During the speech of the head of the Federal Reserve in Congress, the value of the dollar decreased.

Powell declared that the US economy had experienced a significant deceleration.

A three-day period of sluggish strengthening for the dollar index was interrupted.

Jerome Powell, the Chairman of the Federal Reserve, gave a semi-annual report on monetary policy to the House of Representatives Committee on Financial Services of the United States Congress on Wednesday.

Powell declared that the US economy has experienced a significant deceleration, with its primary metrics exhibiting a meager growth rate in the current year. The real estate sector is still feeble, inflation is far from the desired 2%, and the job market is still a struggle.

The Federal Reserve will be compelled to increase the base rate this year due to the high inflation and the challenging state of the labor market. He/She stated that the process of bringing inflation back to the 2% level will be a lengthy one.

Powell admitted that it may be sensible to increase rates, but at a slower rate, as the regulator will keep on making decisions from gathering to gathering dependent on the approaching information, their ramifications for the viewpoint and the equilibrium of dangers.

He stressed the importance of the dollar's status as the world's reserve currency. He asserted that the dollar will remain the world's reserve currency as long as the United States upholds its democratic institutions and the rule of law.

The US currency weakened after the head of the Fed's speech did not differ much from what the markets heard a week ago at the press conference following the Fed meeting.

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