2 replies to this topic

[Rogerdodger]

Investors wait for Fed minutes

FedWatch tool, which predicts only an 8.5% probability of the first rate cut occurring in March, a 34.9% in May, and a 77.25% probability of lower rates in place by June.

Last week’s CPI report revealed that inflation in January came in fractionally hotter than anticipated.

 

Tomorrow’s release of the minutes will be an important report that hopefully provides more insight into the internal thinking of Federal Reserve members. The recent gains in gold were the result of both dollar weakness and market sentiment regarding the first interest rate cut by the Federal Reserve. The combination of dollar weakness and rate cuts by the Fed could easily take gold prices higher from current values.

https://www.kitco.co...consecutive-day

 

[OEXCHAOS]

The TBT was up nicely today.

 

I think that the Fed is in a tough place.

[Rogerdodger]

Federal Reserve officials continued to worry that inflation could stay stubbornly high during their policy meeting last month, minutes released Wednesday showed. That could keep interest rates at 23-year high for longer than previously expected, affecting Americans’ borrowing costs on everything from car loans to mortgages.

The Fed in January opted to hold rates steady for the fourth consecutive meeting and officials acknowledged that inflation has slowed considerably from its four-decade peak in the summer of 2022. But Fed Chair Jerome Powell pushed back on the market’s expectation that the first rate cut could come in the spring, saying that it’s way too soon to declare victory.

Stocks ended lower last week, breaking a five-week streak of gains as hot inflation gauges raised fears among investors that the central bank may cut rates later and less aggressively than previously expected.