Jerome Powell spoke and what it means for the repo rate

What happens in the US has an influence on exchange rates and financial markets all over the world. We know that the US inflation rate is high and to fight it the Federal Reserve Bank first ended their policy of quantitative easing and then started to raise interest rates. The hope is for a soft landing, which means that they bring inflation under control without dampening economic activity or job creation too much. With the previous 75 basis point interest rate increase, the markets began to think that inflation in the US would soon start to fall and that the Fed will raise interest rates in smaller increments throughout the rest of this year. Thus, everyone was listening carefully to Jerome Powell's speech at the big gathering of central bankers at Jackson Hole last Friday. * The Economics Minute is supported by the NWU Business School.