GBPUSD

British Pound / US Dollar

The Federal Reserve's (Fed) objective is now to curb price hikes in the U.S. However, other countries are under pressure caused by the Fed's actions, as their central banks are also forced to raise their own rates at a rapid pace.

The Bank of England is buying bonds to stabilize financial markets. Subsequently, the pound sterling rose in volatile trading.

The UK is enduring a huge package of unfunded tax cuts by its government. The consequence was the fall of the pound sterling.

According to the words of Charles Evans, current President of the Federal Reserve Bank of Chicago, financial conditions might be complicated by growing restrictiveness caused by market volatility.

The Bank of England intends to suppress the storm in Britain's bond markets, noting it would buy back a national debt needed to revive the economy after new British Prime Minister Liz Truss' tax cut reforms. These measures provoked turmoil in the country's market.