Week InReview: December 2, 2022

Fed aftermath.

Fed Chair Jerome Powell on Wednesday night signaled the central bank will slow the pace of interest-rate increases next month, while stressing borrowing costs will need to keep rising and remain restrictive for some time to beat inflation. While that sentiment was very much in line with expectations, the confirmation that a calmer pace of hikes is imminent sparked a rally in global stocks and pushed the dollar to a three-month low. As Sarah Hewin, senior economist at Standard Chartered, put it, the upshot is “there is no one-way bet any more on dollar strength.''

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