U.S. Federal Reserve Sticks To The Script But For How Long?

By Stephen Flood of GoldCore

CEO, GoldCore • Feb 3, 2023 at 12:49 PM EST

The change of tune from "higher interest rates are needed to fight inflation” to “we might have raised enough and need slow down increases to see” was apparent in both the statement released.

Those watching the gold price and price of silver will have noticed the sharp uptick following the Federal Reserve’s announcemen. This was despite the Fed doing exactly what everyone expected them to do. For now, the Federal Reserve is sticking to its relatively well-telegraphed plan but how long will it be until they need to move the goalposts in order to do so?

Gold and Silver prices rose sharply on the Fed’s statement on Wednesday. The change of tune from "higher interest rates are needed to fight inflation” to “we might have raised enough and need slow down increases to see” was apparent in both the statement released after the interest rate setting committee’s two-day meeting and in Chair Powell’s press conference.

Federal Reserve: Gold price

Gold Price Chart

Federal Reserve : silver price chart

Silver Price Chart

The committee voted unanimously to raise the fed funds rate by only 0.25% this time around. Also, hinted that there might only be one more similar hike at their next meeting on March 21-22.

The Committee will also update their economic projections and their outlook for the fed funds rate at the March meeting.

More By This Author:

China And The U.S. At Sovereign Debt War
Gold And Silver Chart Analysis January 2023
Here Are Three Things You Can Learn From The Fed

Disclosure:

The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

Comments

Back to all articles