The main currency pair continues to analyze the results of the US Federal Reserve meeting. The current quote in EURUSD is 1.1590. So, the key event of the week took place. The US Federal Reserve System left the interest rate unchanged in November, as predicted, in the target range of 0-0.25% per annum. As the head of the Fed Jerome Powell noted, the time for a rate hike has not come yet.

In November, the stimulation program was reduced by 15 billion USD – to 105 billion. In December it will be reduced to 90 billion USD. In the comments Powell noted that the “surge” in coronavirus cases last summer turned out to be a limiting factor in the recovery of a number of sectors and directions, as well as the service sector. Supply chain disruptions have complicated the auto industry in the third quarter. Their recovery is a risk factor and uncertainty for the near future, inasmuch as no one will undertake to say when the situation will stabilize. These failures could additionally stimulate inflation, the Fed is sure.

In addition, it was substantially influenced by very strong consumer demand. Inflation is higher than we would like to see it, but the Fed is willing to be patient and watch. As for the employment market, the comments were not very optimistic here. According to Powell, the 4.8% unemployment rate, as it is now, does not include the weakness of the employment market due to the lack of labor resources in some directions. However, it is probably that already in 2022 it will be possible to reach the maximum employment parameters.

Generally, the results of the meeting turned out to be approximately the same as predicted. Important decisions have been made: stimulus will be reduced. This means that by the summer of 2022, the QE program can be “curtailed”. Furthermore, based on the employment and inflation situation, it will be time to consider the issue of rates.