Changing Perspectives: Are The Lives Of US Citizens A Priority Now Over Controlling Inflation After Fed Minutes?

Changing Perspectives: Are The Lives Of US Citizens A Priority Now Over Controlling Inflation After Fed Minutes?

The Fed Minutes have been released and it seems there’s a change in perspective now within the Federal Reserve. Before diving into that, let’s recap.

The FOMC meeting that took place from October 31st to November 1st created panic before it took place but the stance from the FED stating that a steady rate was being maintained was kind of a relief to American citizens altogether, however as we say ” There is a calm, before the storm. 

While speaking at the Jacque Polak Annual Research Conference in Washington DC, the FED Chair Jerome Powell teased that more rate cuts might be a possibility and this sent shockwaves down towards each trader and investor out there. 

So the anticipation for the FOMC statement was crucial and the stakes were high. 

So the query on everyone’s thoughts is “What has come about with the “Fed Minutes that’s been released?”

US Fed Minutes – A Highlight Reel:

FED minutes - FOMC statements from the chairman

As per the Fed minutes of the October 31 – November 1 FOMC meeting, it seems that the FED has realized the problems of the common households in America. 

The meeting on Tuesday showed that the committee emphasized how the high interest rates have been squeezing households and businesses in America. 

Here are the main highlights of the Fed Meeting:

  • The Fed officials have unanimously decided to keep the benchmark lending rate at a range between 5.25% to 5.50% for consecutive times. 
  • As always they have said that the policy decisions at every meeting would continue to be based on the incoming information concerning the economic outlook to balance the risks.
  • The participants noted that further tightening of the monetary policy would be only appropriate if the information indicated that the progress towards the Committee’s inflation objective was insufficient.
  • Each and everyone who participated had also ascertained that it would be appropriate for policies to maintain a restrictive stance for some time until the inflation moves towards sustainability, thereby inching close to the Committee’s objectives.
  • The members also highlight that the adjustment in the monetary policy will be on a wide range of information which includes readings on labour market conditions, inflation pressures and expectations and financial and international developments.
  • Finally, they stressed the matter that they will have to scrutinize more data indicating that inflation pressures were abating to be more confident that inflation was on course to return to 2 percent over time. 

Commodity Samachar’s Outlook and What to do before the Next FED Meeting?

The US economy has been going through a tough time with the consecutive Fed rate hikes but things are yet to be revised. Ankit Kapoor, Head of Research at Commodity Samachar had this to say about the Fed minutes and the outlook

“ The FED had done a remarkably as they have kept the rates steady and we agree that it was the best course of action. The gold rates are staying steady as a matter of this and the observation regarding the pressure the interest rates are putting on the economy is also something that was of concern. In the event that the fed rate was uncut or changed, gold’s trajectory will remain steady and there will be constant pressure on the same.” 

He further iterated his view on the future outlook regarding the Fed Meeting that will be held between December 12 -13, 2023. It goes something like this. 

“Word on the street and the point of view of mine and the analysts at Commodity Samachar has been that the rates will be kept steady for a consecutive time. The market has become data driven and several factors can influence these decisions and till March, there isn’t a possibility as of yet for any rate cuts or changes. However, traders must be prepared for a mild recession that may emanate after December in which gold will be under pressure and move upwards in Q1 of FY 2024. So keep your eyes out for that!!”

Commodity Samachar
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Also Read: Following Fed Meeting Minutes , Will ECB Stability or US Consumer Data be in the Spotlight?, Is the US Dollar Index Taking a Bearish Turn Amid Possible Fed Rate Hike?

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