ECB has reached the ceiling of pessimism: how will the Fed respond?

ECB has reached the ceiling of pessimism: how will the Fed respond?Despite all the signs of weakening economic growth, a slowdown in bank lending, a cooling labour market and falling inflation, the European regulator again raised interest rates by 25 bps but promised that it would not take any more risks.The ECB ended the cycle of rate hikes and included this decision in the final statement. No one expected this to be announced right now  European inflation is still above critical levels.Yesterday's decision raised the ECB's deposit rate above its previous record high level in 2001 when regulators raised borrowing costs to give further stability to the new currency, the euro.Policymakers remain more concerned about the risk of consumer price growth remaining above target than about the risk of a sharp economic downturn.Economic growth forecasts fell after industrial production and retail sales fell in July and business surveys pointed to further contraction in August. It is expected: that inflation dynamics will be 5.6% at the end of the current year, 3.2% in 2024; for the Eurozone GDP  growth of 0.7% in 2023, next year  approximately 1%.Lagarde did not say anything new; now the discussion is only possible on the topic of maintaining rates at the current level. But still, the level of European rates is lower than the Fed rates, which means the flow of capital will continue to be directed into the dollar.The euro, of course, did not like this, the priority remains with the bears, and the trend is unlikely to reverse before the 1.05001.0450 zone.Next week we expect a decision on rates from the Fed and the Bank of England. Most likely, the American regulator will keep the rate, but the British regulator will again raise it by 25 bps to support its European partner.In any case, you and I will not be bored.Profits to yall!#ForexChief #fed #nasdaq #Market #forexnews #stocks #worldnews #ECB