On Friday afternoon, the eagerly awaited speech by US Federal Reserve chief Jerome Powell got the German leading index going.
At the start of the trade on Friday, the DAX lost moderate 0.16 percent to 24,254.81 points. After small losses were initially seen, the stock market barometer was noted around the zero line. In the afternoon, the stock market baromer was more friendly – the speech by Fed chief Jerome Powell came into focus and ultimately increased the DAX by 0.29 percent to 24,363.09 points.
All -time high of the DAX
On July 10, the German leading index reached a new record high at 24,639.10 points. So far, the highest closing course in the DAX history is 24,549.56 index points.
The focus of Fed boss Powell in focus
Before the excited speech by Fed boss Jerome Powell at the central bank meeting in Jackson Hole (Wyoming), the nervousness at the markets was felt. A few days ago, the likelihood of reducing interest from the US Federal Reserve in September was around 90 percent – according to experts, it is now only around 70 percent after more robust purchasing managers and rather restrictive statements.
In his speech, however, Powell indicated that changed risks could require a adjustment of monetary policy, which indicates possible future interest changes. He also warned that the downward risks for employment increase, which could also have an impact on the future monetary policy of the US Federal Reserve.
In his explanation, the Fed boss also emphasized that the current key interest rate is considered moderate restrictively. He also stated that preventive measures could be justified if the tense labor market is a risk of price stability. In a unanimous decision, the FED also passed a new monetary -political framework that provides for more flexible inflation destination. At the same time, she completed the “makeup” strategy for inflation. Powell also noted that the effects of tariffs on inflation in the basic scenario were assessed as temporarily.
Redaktion finanzen.net / dpa-fx / Dow Jones Newswires