The FOMC organizes 8 meetings in a year and reviews economic and financial conditions. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors, partially presidentially appointed Federal Open Market Committee (FOMC). The Federal Reserve System (Fed) is the central banking system of the United States and it has two main targets or reasons to be: one is to keep unemployment rate to their lowest possible levels and the other one, to keep inflation around 2%. If rates remain unchanged, attention and also main news and analysis turn to the tone of the FOMC (Federal Open Market Committee) statement, and whether the tone is hawkish, or dovish over future developments of inflation. A rate cut, on the other hand, is seen as a sign of economic and inflationary woes and, therefore, tends to weaken the local currency. In the US, the Board of Governors of the Federal Reserve (FED) meets at intervals of five to eight weeks, in which they announce their latest decisions.Ī rate hike tends to boost the local currency, as it is understood as a sign of a healthy inflation. The 81-year-old Fauci, who is fully vaccinated and has received two booster shots, was experiencing mild COVID-19 symptoms.With a pre-set regularity, a nation's Central Bank has an economic policy meeting, in which board members took different measures, the most relevant one, being the interest rate that it will charge on loans and advances to commercial banks. Joe Biden's chief medical advisor Anthony Fauci tests positive for COVID-19 Mahatma Gandhi's grandson Gopalkrishna Gandhi served as the governor of West Bengal
Presidential polls: Sharad Pawar opts out of race, Mamata proposes names of Farooq Abdullah & Gopalkrishna Gandhiįarooq Abdullah is the former chief minister of Jammu and Kashmir. Palladium inched down 0.1 percent to $1,859.14 per ounce, while silver gained 0.4 percent to $15.47, and platinum rose 1.4 percent to $764.11.
Highlighting investor appetite for the bullion, SPDR Gold Trust holdings, the world’s largest gold-backed exchange-traded fund, rose 0.24 percent to 1,083.66 tonnes on Tuesday. The International Monetary Fund’s managing director said it was “very likely” the Fund would cut global growth forecasts further as the pandemic was hitting many economies harder than previously projected. Underscoring the deeper economic impact of the virus, US consumer prices dropped by the most since 2008 in April, while 20.5 million Americans lost their jobs in the month - the deepest fall since the Great Depression.
Massive stimulus measures support gold as it is used as a hedge against inflation and currency debasement.Īn estimated $15 trillion worth of stimulus has already been unleashed by central banks and governments to shield their economies from the coronavirus pandemic. “So even as we see the potential for gold market liquidation and broad asset market drawdowns in the next 3-6 months, we think gold trading will still mostly hover in a high-$1,600 to mid-$1,700 handle.” the front-end curve pricing this phenomenon may be a bullish gold market tail risk,” according to a note from Citi Research. “While we do not expect the Fed to go to negative policy rates, and they still have plenty of other monetary tools at their disposal. Markets are now waiting for Powell’s speech at 1300 GMT for clarity on the health of the US economy. Last week, US money market instruments started to price in a chance of negative rates.Ĭlick here to follow LIVE news and updates on stock markets President Donald Trump on Tuesday again urged the US central bank to adopt negative interest rates.
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