The members of the US Federal Reserve Committee (FOMC) discussed the economic situation in the United States of America and the world in the meeting that was held on the third of November, and its minutes were announced on Wednesday the 24th of November, where they discussed the rise in inflation around the world in addition to the slowdown in the growth of the global and American economy in the third quarter.

The Federal Reserve announced at the meeting in early November that it would start reducing bond purchases by $15 billion per month by $10 billion in US Treasury bonds and $5 billion in mortgage-backed securities to get rid of $120 billion, stressing that the pace can be adjusted as necessary.

The minutes showed the divergence of views of the members of the US Federal Reserve on inflation, as there are those who see that inflation is temporary and reflects the rise in energy prices and other factors, while some have expressed their fear of the continuation of high inflation for a period of time.

After the minutes of the US Federal Reserve, inflation rates rose in the United States of America, where the CPI index rose by 0.9% to 6.2% in the annual reading, its highest level since 1990.

On the other hand, the US Federal Reserve’s preferred indicator for measuring inflation, PCE, or the personal consumption expenditures index, issued yesterday, Wednesday, rose to 5% on an annual basis, compared to 4.4%.

These inflation figures raised the number of members who demanded the necessity of accelerating the process of reducing bond purchases amounting to 15 billion dollars (Bostick – Bullard – Waller – Clarida), to join them the US Federal Reserve President in San Francisco Mary Daly on Wednesday, who expressed her readiness to accelerate the pace of reduction.

Even with the US Federal Reserve’s view of inflation as temporary and will disappear with the demise of temporary factors and their consensus on this, the vision has now become that temporary factors may take a longer time, and accordingly we may see a change in the US Federal Reserve’s policy regarding reducing bond purchases in the coming period and the date of the first rate hike, and this explains the hikes in interest rates. The US dollar continues.

After a wave of economic data tsunami technically, the markets will enter a phase of lack of liquidity today, Thursday, coinciding with the celebration of Thanksgiving Day in the United States of America today, and the closing of the American markets early tomorrow, Friday.

The general index of the US dollar ended its trading on Wednesday with a gain of 0.35% at the close at 96.81 levels, while the euro fell to below the 1.12 levels and the yen fell to 115.50.