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No “Electrifying” Atmosphere for Biden & Putin, Interest Rates Could Rise

Yesterday, in Geneva, after his meeting with the Russian president Vladimir Putin, the US president Joe Biden said, “There is no substitute for a face-to-face meeting between leaders.”

The US President described the meeting as “good”, “positive” without an “electrifying” atmosphere, but said he had made it clear to Putin “how far they are willing to go”. Biden was expectant of the Kremlin’s next moves. “It’s not about trust, it’s about interest, and verifying that interest.” The American president wishes the best for the Russian economy, but if the country does not behave accordingly, “their actions will have an impact”.

Yellen Considers Inflation as Transitory

Yesterday, Treasury Secretary Janet Yellen also appeared before the Senate Finance Committee. The former Fed Vice Chair stressed that the inflation data of the last two months is temporary. “I think our economy is on its way back to a more normal functioning”. At the same time, Yellen assured Congress that President Biden’s administration is taking the data very seriously, stressing once more that she considers them transitory.

Possible Increase in Interest Rates

After a two-day meeting, Fed policymakers are pointing to a 3.4% inflation figure for the year and have hinted that interest rates could rise from near zero. Their projections include two interest rate hikes in 2023 with one hike not initially envisaged until 2024. Federal Reserve Chairman Jerome Powell signaled that there could be a discussion on scaling back bond purchases. Follow the latest economic news with Traders Trust, a trusted broker offering premium trading conditions, and take advantage of unique promotions such as our 100% and 200% Deposit Bonus.