Federal Reserve issues FOMC statement | Metals Mine

  • Federal Reserve issues FOMC statement

    From federalreserve.gov

    Recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have moderated since early last year but remain strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks. In support of its goals, the Committee ... (full story)

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Banditten
Jan 31, 2024 1:19pm
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Quoting hotaggie98
There will be no rate cuts this year at all if those FED guys wanna keep their jobs next year. I do not trust that inflation is coming down faster than expected. They're cooking the numbers because nothing has changed in the real world and manufacturers are not going to just reduce prices just like that... Rate cuts are a pipe dream because if Donal Trump wins the presidency again, he'll cut rate a lot; therefore, there is no point of cutting rate now and have less wiggle room in the future.
Clearly a dovish statement if you read through it. Interestingly enough they also removed the statement about the financial system being healthy and strong. And btw prices dont need to go down for inflation to decrease, just need to go up at a slower pace. Whether that happens I dont know in the US but in mainland EU thats definitively my experience.
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makingmoves
Jan 31, 2024 1:16pm
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Quoting Vancarbon
Not what the market wanted to hear
I thought the same, especially due to the articles and general consensus of the media/traders. However due to the only moderate initial reaction and lack of immediate follow through makes me think the market wasn't caught off guard at all. Apart from a slightly more bullish usd to reflect their lack of need to cut rates right now, everything priced in as expected.
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hotaggie98
Jan 31, 2024 1:12pm
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There will be no rate cuts this year at all if those FED guys wanna keep their jobs next year. I do not trust that inflation is coming down faster than expected. They're cooking the numbers because nothing has changed in the real world and manufacturers are not going to just reduce prices just like that... Rate cuts are a pipe dream because if Donal Trump wins the presidency again, he'll cut rate a lot; therefore, there is no point of cutting rate now and have less wiggle room in the future.
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hotaggie98
Jan 31, 2024 2:02pm
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The next major move in the FX world would be BOJ raising rate to be back to Zero. It was pretty much agreed upon in the last summit that Japan will not make a move until everyone is done with their rate raises, so it's time for BOJ to make a move next... Everyone is gonna stay put.
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jesing
Jan 31, 2024 1:03pm
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ooohohhhhooooo,

now gold go up side, and created double top,

let's see on march on rate cut or not,
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asmadi78
Jan 31, 2024 1:31pm
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Long gold forever in time!
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hotaggie98
Jan 31, 2024 1:58pm
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Fed's Powell: "I think lower rent costs are coming, and will feed through. Lower rental inflation is in everyone's forecast". This shows how out of touch these guys are with reality. Please show me where rent costs are coming down, I would love to see it. It's the opposite. It's POWELL's world, we're just living in it...
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fxx360
Jan 31, 2024 1:33pm
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Inflation is at risk with ongoing Middle East conflicts Attacks Iran and oil going over $100 per bbl.
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Mubashar3170
Jan 31, 2024 1:11pm
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Its unexpected
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kitti10
Jan 31, 2024 1:16pm
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It seem they dont want to cut interest rate because they want to sale their bond more and more
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Ftmofx
Jan 31, 2024 1:30pm
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I want to hear of Powel's speech at the conference. If the rate is not cut, how can we think hawkish? I saw nothing
Ftmofx
Jan 31, 2024 2:13pm
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US Dolar protective speech. Every side has aPowel's good plan and he is well prepared. Boom Boom USD. Hawkish....
Trader#4975
Jan 31, 2024 2:22pm
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Quoting hotaggie98
The next major move in the FX world would be BOJ raising rate to be back to Zero. It was pretty much agreed upon in the last summit that Japan will not make a move until everyone is done with their rate raises, so it's time for BOJ to make a move next... Everyone is gonna stay put.
Japan will not raise their interest rates from -0.10%, because they are export economy, and having cheaper JPY is good for everyone.
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mexdeupmac
Jan 31, 2024 10:23pm
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Gold went crazy, there is still no direction, hoping that NFP will help provide that. As Powell said If jobs are down, march cuts are possible.
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Trader#F774
Jan 31, 2024 1:12pm
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howkish
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Trader#FDE7
Jan 31, 2024 1:27pm
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Expected. Furthermore, if they were going to cut rates in May or anytime this year, they'd not say anything about it now and create more room for maximum impact of a cut. They only have so much room for rate cuts before the go negative, they have infinite room to tighten on the plus side, so they need to keep the potency of rate cuts undiluted. They will always downplay rate cuts, and hype rate hicks.
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