The Fed needs to quickly lift its foot off the gas | 15 Desember 2021

15 Desember 2021, USD/JPY

The Fed needs to quickly lift its foot off the gas

USDJPY trading plan:

The Fed needs to quickly lift its foot off the gas pedal and start tapping the brakes to slow economic activity and jobs growth before runaway price hikes kill both altogether. Powell seemed to nod to that possibility last month when he told Congress that the Fed needs to balance its inflation goal against its maximum employment goal. Pay is rising rapidly, and job openings are near a record high. The Federal Reserve is expected to announce that it is speeding up the end of its pandemic-era bond purchases and signal a turn to interest rate increases next year as a guard against surging inflation. This is a positive signal for the dollar.

Investment idea: buy 113.60 and take profit 114.02.

David Johnson
Analyst of «FreshForex» company
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