28 September 2022 | Other

Strenght of dollar might lead to Fed changing its policy towards softening

The strong U.S. dollar has been “devastating” to other countries of the world, and this might affect the country’s competitiveness and economic activities later, which can cause the Fed to stray from its restrictive monetary policy course. This point of view was voiced by Cathie Wood, Chief executive officer and founder of Ark Investment Management.

According to an opinion of ARK Invest, the ongoing monetary policy of the U.S. is more restrictive than the one which was pursued by the country in the 80s.

During the mentioned period, Fed’s Chair Volcker increased the funds rate, doubling its level from 10% to 20%.

In 2022, current Fed Chair Powell has delivered 13-times increasing of the rate, hiking it from 0.25% to 3.25% to neutralize price growth.

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