Skip to content Skip to footer

Powell’s Plan to Fix Inflation, Twitter Deal On Hold & Euro Zone’s Russian Energy Concerns

Gold drops to 3-month low, as Powell says Fed will fix inflation

Gold dropped to its lowest level since February, as Fed Chair Powell spoke about the bank’s battle with inflation.

Speaking after yesterday’s market close, Powell started by stating that, “We fully understand and appreciate how painful inflation is”.

💡 More on this
He went on to add, “Nothing in the economy works, the economy doesn’t work for anybody without price stability”.
The Fed only recently hiked rates up by 0.5%, its largest hike in over two decades, as it continued to tighten policy.

He went on to say, “We went through periods in our history where inflation was quite high … The process of getting inflation down to 2% will also include some pain, but ultimately the most painful thing would be if we were to fail to deal with it and inflation were to get entrenched in the economy at high levels, and we know what that’s like. And that’s just people losing the value of their paycheck”.

Twitter down 8%, as Musk says deal is “on hold”

Shares in Twitter were down by nearly 10% on Friday, as markets reacted to Elon Musk saying that his takeover of the company was “on hold”.

The Tesla Founder and CEO tweeted that, “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users”.

His tweets follow yesterday’s news that the SEC was investigating his late disclosure of his ownership stake in the company.

Musk recently secured over $7.1 billion in investments to close the deal; however, it seems there is still more work to be done.

As of writing, $TWTR is trading 8.16% lower.

EURUSD nears 5-year low, on Russian energy concerns

EURUSD fell close to a five year low to end the week, as traders continue to forecast what a Russian oil embargo will mean for Europe.

Many already believe that parts of Europe are in recession as a result of inflation, however this could worsen should Russian energy be switched off.

Germany, which is Russia’s main client in Europe, said some gas lines were switched off, as Russia restricted distribution of energies to Gazprom’s German subsidiary.

Hungary also recently voted against a Russian oil embargo, and this latest action by Russia, could see more EU member states join Hungary in this opposition.

WTI crude rose above $110 per barrel on the news.

“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

Warren Buffet

Eliman Dambell

Senior Market Analyst