Weekly

Not afraid of raising interest rates

2023-03-23

March 23

Today's amplitude interval

The Federal Reserve announced the results of the interest rate meeting at 2 am this morning. Federal Reserve Chairman Powell told reporters that a few days before the start of this meeting, the bureau had

After considering the suspension of interest rate hikes, investors expect that the crisis of bank failure will still be threatened, although the Federal Reserve said it would cut interest rates this year and said it would increase if necessary.

Raise interest rates; However, the yield of 10-year treasury bonds plummeted by 5% to 3.46%, indicating that the market believes that the Federal Reserve is not right, and the gold price seems to find support between $1,936.

I look forward to trying another $2,000 before the current price is consolidated. The price of gold rises and falls day by day, which can be used for band trading. Today's suggested volatility ranges from $1,958 to $1,980.

The crisis of confidence in European and American banks was temporarily eased, the market gradually restored confidence, and the risk aversion cooled rapidly. US stocks soared by more than 1% every other night, taking Hong Kong stocks to continue.

Up. The Hang Seng Index opened 169 points higher, and the international financial stocks listed in Hong Kong, which had been reported by the collapse of European and American banks, generally outperformed the market, and finally the Hang Seng Index closed up 332.

19591 points, or 1.7%. The United Kingdom announced the consumer price index last month, and the latest figure unexpectedly rose to 10.4% year-on-year. At the same time, the United States

The Federal Reserve will soon announce the results of this month's interest rate meeting. Investors generally believe that the authorities will raise interest rates by 25 points as planned, and European stock markets will follow the Asian stock market slightly.

China's DAX index rose by 0.15%; The CAC index in Paris rose by 0.26%, while the FTSE 100 index in Britain rose by 0.42%.

Federal Reserve Chairman Powell commented on the collapse of Silicon Valley Bank in the United States, stating clearly that serious management mistakes were the main reason for banks to face liquidity risks, but he

It shows that the bankruptcy of Silicon Valley Bank is an independent case, and there is no extensive weakness in the banking system. He supported all investigations into Silicon Valley Bank and planned for stronger supervision.

And norms. He also said that regulators have noticed these risks and are intervening, believing that tighter credit conditions can replace raising interest rates. And US Treasury Secretary Yellen

It means that the bankruptcy of small or regional banks may trigger the same bank run as the bankruptcy of large banks, and we do not want to see infectious bank runs, but the government does not consider it.

Providing insurance for all unprotected bank deposits will only continue to individually assess the bank's response to the impact of systemic risks in the event of bank failure.

Yellen's statement sent a pessimistic message, coupled with the pressure of the Federal Reserve to raise interest rates continuously and the opportunity to increase the deposit reserve to compress credit, US stocks rose and fell, and Wall Street.

The three major stock indexes fell more than 1.6%, the Dow Jones index fell 1.63%, the Standard & Poor's 500 index fell 1.66%, and the Nasdaq Composite Index fell 1.6%. The federal reserve this morning

At 2 o'clock, the results of the interest rate discussion were announced, and the decision-makers decided to raise interest rates by 25 points. The rate increase was as expected by the market, and Wall Street banks also thought that the interest rate discussion was emerging in the financial market.

The crisis of confidence is very challenging, but it is still considered that fighting inflation is the top priority of the Federal Reserve. It is expected that the Federal Reserve will follow the example of the European Central Bank and remain unchanged.

Avoiding the sudden cancellation of interest rate hikes may cause panic in the market.

According to the statement made to reporters by Chairman of the Federal Reserve, Powell said that a few days before the start of this meeting, the bureau had considered (referring to the bank failure crisis) suspending the increase.

Interest rates, but in the end, all participants unanimously supported raising interest rates by 0.25%, and pointed out that participants thought that interest rates would not be lowered this year. The gold market rose sharply by $24 on schedule,

The highest rose to $1978.9, and the lowest price of gold was $1934.3, and finally closed at $1970, up $29.5.

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