28/08/2018 – Fed Chair Said Rate Hikes Are Best To Protect 

USD

Fed Chair Jerome Powell said on Friday that steady interest rate hikes are the best way to protect the U.S. economic recovery and keep job growth strong and keep inflation under control. Speaking just days after President Donald Trump criticized the U.S. central bank’s rate hikes, Powell stated that “The economy is strong. Inflation is near our 2 percent objective, and most people who want a job are finding one… If the strong growth in income and jobs continues, further gradual increases in the target range for the federal funds rate will likely be appropriate.” The Fed is expected to raise rates in September and again in December, continuing what it refers to as “normalisation” into 2019.

GBP

British banks approved fewer mortgages last month, despite a boost from existing home-owners seeking to lock in cheaper interest rates ahead of the Bank of England’s rate rise in August. The number of mortgages approved for new house purchases dropped by 4.3 percent on the year to 39,584 on a seasonally adjusted basis, figures from trade association UK Finance showed, and net mortgage lending was the weakest since February.

Key Announcements

None