Market participants believe that a possible tightening of the Fed's monetary policy may increase the lending burden on corporations. Some investors are hoping for an increase in the RBNZ rate at the next meeting on 18 August. This contributed to the strengthening of the New Zealand dollar. RBNZ kept the rate at 0.25%, but at the same time announced the reduction of the asset repurchase program through money issue by NZ $ 100 billion ($ 70 billion). The Reserve Bank of New Zealand (RBNZ) meeting took place today. Note that while the representatives of the FRS are concerned only with the powerful rise in prices for American real estate. Recall that already in May, the core personal consumption expenditures price index soared by 3.4% yoy, which is the highest since April 1992. This could increase consumer prices due to increased demand. 160 million Americans were vaccinated fairly quickly, who left quarantine and began to spend their funds.

However, Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen previously stated that high inflation in the United States is a temporary phenomenon. Since the beginning of the coronavirus epidemic in 2020, their total volume has been $ 6 trillion. US consumer prices rose on the back of a historically low Fed rate of 0.25% and huge government monetary stimulus programs. It turned out to be the largest since November 1991. At the same time, the growth of core inflation (core CPI) amounted to 4.5% in annual terms. American inflation in June this year reached 5.4% in annual terms, which is the highest since August 2008. Investors hope that the Fed will speed up the timing of the rate hike amid strong consumer price increases. On Tuesday, the US dollar index rose for the second day in a row. This will support the dollar rate, but may have a negative impact on the quotes of stock indices, precious metals and commodities. Investors are hoping for a tightening of the Fed's monetary policy. Recall that at that time the Fed's rate was 2%, and now it is 0.25%. It peaked since August 2008, when there was another global economic crisis. Fed Chairman Jerome Powell can comment on the strong inflation in the US in June to 5.4% in annual terms.

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