When the interest rate hike rumours grow, which will inevitably change the sentiment, gold will reverse its trend.
Why did Obama order this high profile meeting with the Chair of the US Federal Reserve — Janet Yellen? There are a few factors to consider and they are to do with the upcoming US election…
F. Scott Fitzgerald, author of The Great Gatsby, famously said, ‘The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function’. My…
Oil jumped more than 5% while gold was up US$30 an ounce, or around 2.5%. Clearly, there is still a lot of bearish positioning in the commodity space.
The Federal Reserve lifted interest rates to <0.50% in December last year. And, for the second time this year, rates have remained unchanged.
The Fed’s independence is again threatened: not by war, but by secular stagnation.
Understanding this asymmetry in the Fed’s attention to stock markets is crucial to a sound analysis of Fed policy in the coming year.
The implied tightening cycle for the target Fed funds rate is 100 basis points per year for three years (through the end of 2018).
‘Restrain economic activity somewhat’ is Federal Reserve speak for deflation. But Janet dare not utter the ‘D’ word and spook the crowd.
US Federal Reserve removed the punch bowl, turned the house lights up, and raised the target short-term US interest rate to a range between .25 and .50 basis points.