On Friday, the eagerly awaited speech by US Federal Reserve boss Jerome Powell got a little going to the German leading index in the afternoon.
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 able to tend to be a bit friendlier – the speech by Fed leader Jerome Powell came into focus.
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.
Speech by Fed boss Powell
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 – after more robust shopping manager data and rather restrictive statements, it is now only around 70 percent. In this way, investors had been taken away from part of their optimism, which Innes ironically referred to as “hopium”.
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