Precious Metals Shine, FX Eyes Policy Outlook

St. Louis Fed President Alberto Musalem shared his views on the U.S. economy and monetary policy at a Brookings Institution event in Washington, D.C. He gave a speech, “Remarks on the Economic Outlook, the Balance of Risks and Monetary Policy,” and participated in a moderated Q&A. Key Takeaways from President Musalem’s Remarks: • Given the economic outlook and balance of risks, I supported the 25-basis-point reduction in the FOMC’s policy rate last week as a precautionary move intended to support the labor market at full employment and against further weakening. • Recent data indicate the downside risks to employment have increased relative to the risk of inflation remaining persistently above target. Fed's Musalem: Loose financial conditions, other factors mean the Fed should move cautiously on further cuts. Fed's Musalem: Economy near full employment, recent cut to help maintain it Fed's Musalem: Monetary policy must continue to lean against inflation that remains above target. Fed's Musalem: Overemphasis on labor market could lead to policy that is too loose and do more harm than good.

Alberto Musalem, president and chief executive officer of the Federal Reserve Bank of St. Louis, will share his outlook for the U.S. economy and monetary policy. Following his remarks, he will be interviewed by David Wessel, director of the Hutchins Center on Fiscal & Monetary Policy at Brookings, and take questions from the audience. Musalem is among the ...

The price actions of Gold (XAU/USD have shaped the expected bullish move and printed a fresh all-time intraday high of US$3,707 on Wednesday, 17 September, during the onset of the release of the FOMC’s monetary policy outcome and latest summary of economic dot plot projections. Thereafter, the precious yellow metal staged a minor corrective decline of 2.2% ...