reported<\/a>:<\/p>\n\n\n\n\"Fading expectations of recession have brought the focus back to inflation and a potential tight Fed \u2026 and risk assets have started showing more signs of weakness than at any other point this year. We therefore think equities are more at risk of a macro-driven shock than the market is pricing in.\"<\/em><\/p>\n\n\n\nTo be sure, there's little guarantee that Powell's message will be a starkly hawkish one, but investors should keep in mind that inflation remains above Powell & Co's average annual 2% target. Fed officials repeated several times this month that they will continue with the effort to bring inflation down closer to their 2% annual target. The federal funds rate is now in a range of 5.25% to 5.5%, which is the highest level in 22 years, and in the days ahead, stock and cryptocurrency markets will be hypersensitive to any FED comments.<\/p>\n","post_title":"Wall Street's Main Indexes Remain Under Pressure On Fears That The Fed Is Likely Going To Keep High Rates For Longer","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-remain-under-pressure-on-fears-that-the-fed-is-likely-going-to-keep-high-rates-for-longer","to_ping":"","pinged":"","post_modified":"2023-08-27 20:19:49","post_modified_gmt":"2023-08-27 10:19:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13092","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13082,"post_author":"18","post_date":"2023-08-25 01:11:23","post_date_gmt":"2023-08-24 15:11:23","post_content":"\n
In recent news, the President of Brazil has sparked discussions about the possibility of creating a common currency for trade and investment among the BRICS nations. The BRICS group includes Brazil, Russia, India, China, and South Africa. The proposal aims to reduce their reliance on the U.S. dollar and its exchange rate fluctuations, but what does this mean for global trade and the dollar's future?<\/p>\n\n\n\n
What is a BRICS Currency?<\/strong> <\/h2>\n\n\n\nThe idea behind a BRICS currency is to establish a unified currency for trade and investments among the member nations. This would potentially lessen their vulnerability to shifts in the value of the U.S. dollar, which has a significant impact on international transactions.<\/p>\n\n\n\n
Challenges Of Implementing The BRICS Currency<\/strong><\/h2>\n\n\n\nCreating a unified BRICS currency is a complex endeavour. It requires political, economic, and geographical alignment. A shared currency necessitates a banking union, fiscal union, and macroeconomic convergence. A common central bank needs to be established, along with mechanisms to discipline countries deviating from the currency's guidelines.<\/p>\n\n\n\n
Opinions Among BRICS Leaders<\/strong><\/h2>\n\n\n\nWhile the proposal has sparked interest, it's important to note the varying opinions within the BRICS group. South African officials previously stated that a BRICS currency wasn't on the summit agenda. India's foreign minister also expressed that there's no concrete plan for such a currency. However, there's a push for discussions about boosting trade in national currencies.<\/p>\n\n\n\n
Why Does Brazil's President Support It?<\/strong> <\/h3>\n\n\n\nBrazil's President believes that countries not using the U.S. dollar shouldn't be obligated to trade in it. He envisions a common BRICS currency as a means to enhance payment options and reduce economic vulnerabilities. This idea aligns with his advocacy for a similar currency within the Mercosur bloc of South American countries.<\/p>\n\n\n\n
Impact On The U.S. Dollar<\/strong><\/h2>\n\n\n\n
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