Fundamental analysis As a result, uncertainty emerges in the Federal Reserve, but regardless, it will implement near zero interest rate for quite a long time, and it will do so until specific conditions are met - an unemployment rate of 3.
Meanwhile, at the next meetings, plans for the PEPP bond buyback program may be discussed, in which its amount and scope may be changed. As for Europe, the European Central Bank has taken the opposite direction regarding inflation.
Bundesbank President and Board member Jens Weidmann said that the ECB does not need any further easing to its economic policy, especially since the measures taken to combat the recession have already stimulated the eurozone economy more than necessary. He also warned of possible legal problems with the Telegrama forex constitutional court if the ECB remains very flexible on its Bond Purchase Program.
Some politicians are debating whether to follow the lead of the Federal Reserve, however, Weidmann said that this could lead to an asymmetric target, as any central bank would not want to trigger a recession simply to bring inflation back to average after a period of overshoot. Andrey Shevchenko.