As global markets try to rebalance after uncertainty due to the US Federal Reserve's (Fed) signals for earlier interest rate hikes, investors and analysts have set their eyes on speeches by Fed officials, including Jerome Powell.
While the Fed's hawkish stance and the expectation that it might raise interest rates in March continued to be priced in the stock markets, the statements of Fed Chairman Powell on Monday had a positive impact on the stock markets.
Powell said the bank will use its tools to support the economy and a strong labor market, as well as prevent high inflation from becoming permanent.
Recalling increasing economic activities caused permanent supply and demand imbalances and bottlenecks, he said this situation has caused high inflation but the bank is determined to achieve maximum employment and price stability targets.
While the indices in the New York stock market compensated for a significant part of their losses of up to 2% with Powell's statements, the Nasdaq index ended its 4-day downward trend on Monday.
On Tuesday, while the speeches of Kansas City Fed President Esther George and St Louis Fed President James Bullard, whose hawkish stance has come to the fore in the recent period, are at the center of the agenda, clues about the future of monetary policy will be sought in the statements.
Expectations that the Fed's first interest rate hike will be in March with a 90% probability continue.
With these developments, the US 10-year bond yield was stabilized at 1.77% on Monday, after rising to 1.80%, the highest level since January 2020.