Powell's speech really triggered a big market reaction. The US dollar and gold experienced a thrilling "rollercoaster", while US stocks "plunged".
Federal Reserve Chairman Powell said Wednesday that policymakers may have to use more weapons to pull the US out of the economic mire. "The committee's view on negative interest rates really hasn't changed. That's not something we're considering," Powell said. At the start of Powell's speech, the dollar index touched a low of 99.60, but then climbed from its low and hit a high of 100.15. US stocks suffered a sell-off, with the Dow Jones falling 500 points. Spot gold prices rose $7 in a short period, hitting a high of $1717.39 an ounce.
Time:
2020-05-14 09:50
On Wednesday, May 13, Federal Reserve Chairman Powell said that policymakers may have to use more tools to pull the United States out of the economic quagmire, but flatly rejected negative interest rates, saying the Fed was not considering this measure. At the same time, he called on Congress to introduce more fiscal stimulus measures to avoid a prolonged economic slump and promote a stronger economic recovery. Affected by Powell's speech, the financial markets fluctuated sharply in the short term: after hitting a low of 99.60, the US dollar index rose 55 points, hitting a daily high of 100.15; US stocks fell for the second consecutive day, with the Dow Jones index currently down 500 points; spot gold fluctuated particularly violently, rising 7 US dollars in the short term, hitting a daily high of 1717.39 US dollars/ounce, before quickly falling back nearly 16 US dollars from its high to a low of 1701.92 US dollars/ounce, although the gold price quickly rebounded from its low point and rose again above 1710 US dollars/ounce.
The Federal Reserve flatly rejected negative interest rates and called for more fiscal measures to save the economy.
Federal Reserve Chairman Powell said Wednesday that policymakers may have to use more tools to pull the United States out of the economic quagmire. This quagmire has resulted in at least 20 million job losses and caused "unspeakable suffering."
Market Reaction:
US dollar index rebounded sharply after hitting bottom.
Federal Reserve Chairman Powell said Wednesday that despite his pessimistic view of economic growth, he still refused to use negative interest rates as a stimulus tool.
In a webcast speech at the Peterson Institute for International Economics, Powell said the US could face "a prolonged period" of weak growth.
He said the economic recovery could take time, depending on the progress of combating the coronavirus pandemic.
US stocks sold off, Dow down 500 points.
US stocks fell on Wednesday as investors worried about the reopening of the US economy, while senior Fed officials also made pessimistic remarks.
The Dow Jones index fell 500 points, or 2.1%. The S&P 500 fell 1.8%, and the Nasdaq Composite fell 1.6%.
At the beginning of Powell's speech, the US dollar index hit a low of 99.60, but then climbed from its low point and hit a daily high of 100.15.
Gold takes a thrilling "roller coaster" ride.
During the European and US trading sessions, the gold market experienced a sharp rise and fall as traders listened to the latest remarks from Federal Reserve Chairman Powell.
Powell began his speech at a webinar hosted by the Peterson Institute for International Economics. At the beginning of his speech, the spot gold price rose 7 US dollars in the short term, hitting a daily high of 1717.39 US dollars/ounce.
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