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The U.S. Federal Reserve Keeps Interest Rates Unchanged

The U.S. Federal Reserve kept interest rates unchanged after the interest rate meeting, and announced that it would double the monthly reduction in debt purchases to 30 billion U.S. dollars starting in January next year, paving the way for faster interest rate hikes. According to the dot matrix chart of the highest interest rate, there will be three interest rate hikes in the next two years. Recall that only half of the officials estimated that they would need to raise interest rates in September. The Fed pointed out that the policy change was due to the further improvement in the job market and inflation has exceeded the 2% target for a period of time, but it reminded the new variant virus that the economy still faces risks. Fed Chairman Powell also said that the dot map does not represent an action plan. The economy and maximum employment will drive the entire process. Obviously, Powell remains cautious about the prospect of raising interest rates. And because the variables of interest rate hikes around next year are still high, such as the mid-term elections in the United States, the Omicron variant epidemic, and Sino-US relations, the US dollar index rose first and then rebounded.
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