The highly anticipated FOMC statement has been released and the Commodity market news is truly something that needs every trader’s attention.
For the past few weeks, we’ve been conducting a market watch and analyzing what just might be the FED consensus on the economic outlook of the US.
Oil prices have drawn support from the Fed’s decision and policymakers struggled to determine whether financial conditions might be tight enough already to control inflation.
Commodity Market News | The FOMC Statement:
The FOMC stated that the recent indicators proposed suggest that economic activity has expanded at a strong pace in the third quarter for the US. Further, the Job gain has moderated ever since earlier in the year however it has remained strong, and the unemployment rate has remained low as inflation remains elevated.
However, there was uncertainty concerning a few aspects. The FOMC statement further stated “The US Banking system is quite sound and resilient. Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring and inflation. They further went on to say” The extent of these effects remains quite uncertain and the committee remains highly attentive to inflation risks as well.”
Commodity Market News | Monetary Outlook:
The FED has decided to keep the rates stable and has an interesting viewpoint for the future as per the latest commodity market news that’s incoming.
As per the FED’s speech, the Committee seeks to achieve the maximum number of employment and inflation at the rate of 2 per cent over the longer run. They have also gone further on to maintain the target range for the federal funds rate at 5.25 – 5.50 per cent. The committee continues to assess additional information and lays down the implications for the monetary policy.
The Committee has decided to continue reducing the holdings of Treasury Securities agency debt and agency mortgage-backed securities as described in its previous plans. TIll now, the Commitees target is to bring inflation down to 2 per cent.
Commodity Samachar’s Future Outlook:
The FED meet has concluded and here’s a technical outlook from Commodity Samachar’s Head of Research, Ankit Kapoor. He said ” The FED has currently given a hawkish statement. We believe that there would be a maximum hike of 6% and not more than that, however, they will maintain higher interest rates by the end of 2024.
The US economy is currently doing quite well and we all have the same expectation concerning the mild recessions in 2024.
Moreover, we are expecting gold to trade within a range of 1930 – 2080 on the higher side at least till March 2024. Until and unless there is no major news outburst from developed economies this will be the forecast in gold.”
Commodity Samachar
Learn and Trade with Ease
Also Read: Commodity Market News | Bank of England’s Decision in the Limelight?, Gold Trading | Is the movement in gold disastrous for the US economy?
Recommended Read: The Federal Reserve: Global Market Influence & Strategies To Tackle The Phenomenon