The UK and EU agree to a “phased exit mechanism”
According to Reuters, quoting EU diplomatic news, the United Kingdom made tentative concessions in fishing during the trade negotiations with the EU last week. According to the news, the two parties agreed on a “phased exit mechanism” to gradually increase the UK’s share, rather than a one-size-fits-all approach. The other option is to allow EU fishing vessels to operate in certain areas of the UK without being restricted by the UK because of the above scheme is more feasible. In addition, it seems that the two sides did not suspend negotiations due to the “Internal Market Act” proposed by the British side, which drove the pound exchange rate to rebound to the level of 1.29 US dollars.
The U.S. Federal Reserve keeps interest rates and policy unchanged
The U.S. Federal Reserve kept interest rates and all monetary policies unchanged, and changed its policy framework to allow inflation to rise to 2% and above 2% for a period of time. It reiterated that the current interest rate level will be maintained until the labor market achieves maximum employment, and all tools will be used to support the economy, and that the path of economic development largely depends on the development of the epidemic. However, the bureau believes that the forward guidance is strong enough to help the Fed achieve its policy goals and support the economy. The latest “dot chart” of interest rates shows that one Fed official expects to raise interest rates in 2022, and four officials expect to raise interest rates in 2023. As for the expected median value of the longer-term federal funds rate of 2.5%, which is 0.3 percentage points lower than the earlier forecast, it reflects the general belief that the ultra-low interest rate environment will reach 2023.
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