After announcing a fourth consecutive rate increase of 75 basis points on Wednesday, November 03, 2022, Jerome Powell, Chairman of the Federal Reserve ruled out the possibility of making a “pause” in the Central Bank's monetary tightening cycle.

The speech given by the Chairman of the Federal Reserve on 03 last year has dampened investor enthusiasm. They were hoping that the Fed would be less aggressive as the signs of an economic slowdown were growing stronger. According to the economist Christian Scherrmann, “The Fed gave the markets a glimpse of what they were hoping for: a likely slowdown in rate increases, but with an important warning that they will not like: the pain of tightening could last a long time.”

Indeed, the risks associated with monetary policy are “more restrictive for longer” according to strategist Jim Reid, focusing on a new access of weakness on the world stock exchanges.