A meeting between US President Joe Bieden and Federal Reserve Chief Jerome Powell is expected to take place today after 6:15 pm BST. The meeting takes place under the pretext of congratulations on his reappointment as Fed chief and questions about the current state of the economy. The market sees this as a potential opportunity for more volatility.
On the one hand, there are reports that Biden is expected to give an open path for Powell to fight inflation. Of course, the Fed is an independent central bank, but at the same time it also has an economic stability mandate. On the other hand, it is worth remembering that it is getting closer and closer to the US Congressional by-elections in which the Republicans are expected to return to power. The public in the U.S. is not too happy about rising prices, but they are also not thrilled about rising interest rates hitting their incomes through increased interest on loans. Biden may want to know what the Fed's future plans are and perhaps suggest an attempt to declare a "win" against inflation before the fall elections. In theory, inflation may have already peaked, but looking at the recent rise in oil prices, it is clear that this may not have happened at all.
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Open account Try demo Download mobile app Download mobile appThe Federal Reserve did not comment on today's meeting. It is unclear if there will be a joint conference or statement release. However, if there is anything, it can be expected to hit the market around 7-8pm BST at the earliest.
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