The US Dollar rebounds ahead of the publication of the FOMC minutes.
Fed’s Goolsbee said higher interest rates for a longer period can impact labor market conditions.
Gold price (XAU/USD) extends its winning spell to a fifth day on Wednesday as Federal Reserve (Fed) policymakers appear to be divided between the hit of higher interest rates on the United States economy and any possible inflation uptick due to the deepening crisis in the Red Sea.
Most Fed policymakers say that resilient economic indicators, which paint a picture of a robust labor market and strong consumer spending, have bought time to discuss more on rate cuts as these could flare up price pressures again. Chicago Fed Bank President Austan Goolsbee said last week that the outlook of interest rates is tied to the Fed’s confidence in inflation declining to 2%, but he also warned that high rates for an extended period could impact the employment side of the Fed’s dual mandate.
The Fed’s dual mandate is based on achieving full employment and inflation staying at around 2%.
Goolsbee and other Fed policymakers said that inflation is on track to the central bank’s target of 2% despite the acceleration seen in January.
Investors await the publication of the Federal Open Market Committee (FOMC) minutes for January’s monetary policy meeting. The release will likely provide more cues about when the Fed will start reducing interest rates
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.