The future monetary policy of the USA and its positive impact on the global finance

In 2024, despite some uncertainties, the future of monetary policy in the United States seems rather promising. Thanks to the cautious and thoughtful decisions of Jerome Powell, the American economy has shown impressive resilience following the 2020-2022 pandemic and amidst persistent geopolitical tensions. Although challenges remain, Powell’s monetary policy appears to be on the path to stability. Positive repercussions are already being anticipated in global finance.

The FED Maintains Course Amid Political Pressures

Despite intense political pressures urging him to stimulate growth as the 2024 presidential election approaches, Jerome Powell has so far refused to yield to these partisan influences. He prefers to base his monetary decisions on an objective analysis of economic data.

Aware that a too rapid decrease in interest rates could reignite an inflation that is already difficult to control, Powell has acted with caution. This has allowed him to win the trust of investors. They see in his impartial leadership, a sign of financial stability in the United States and around the world.

A Dynamic American Economy Despite Headwinds

In 2024, the American economy is showing commendable vigor despite undeniable headwinds. Indeed, millions of jobs have been created despite the rise in interest rates orchestrated by the FED to control inflation! Which, moreover, has begun a promising decline since mid-2022. Concurrently, wages are rising while the unemployment rate remains low. Certainly, public debt remains a concern and certain sectors such as commercial real estate are experiencing turmoil.

Nevertheless, driven by the enlightened action of the FED, American finance seems to have overcome the shock of the pandemic and geopolitical uncertainty. And this, with growth set to continue in 2024, demonstrating remarkable resilience.

The Influence of American Monetary Policy on Global Finance

Given the preponderant weight of the United States in global finance, there is no doubt that the FED’s monetary decisions will have significant repercussions on international finance. A marked increase in American benchmark interest rates would not fail to strengthen the dollar and destabilize emerging markets. Conversely, an overly accommodating policy would encourage risk-taking and financial instability.

In 2024, Jerome Powell firmly holds the helm of American monetary policy American, despite internal political pressures. His enlightened decisions promote financial stability in the United States while casting welcomed visibility on global finance.