All articles tagged with #fomc minutes
Stock indexes showed slight movements as investors awaited the Federal Reserve's December meeting minutes, with gold and silver stocks attempting rebounds and some tech stocks like Palantir and Tesla improving from lows. The market was cautious ahead of the Fed's release, with minor gains in major indices and notable activity in precious metals and select stocks.
US stocks edged higher amid rising gold prices and anticipation of the Federal Reserve's meeting minutes, which could clarify future interest rate policies. Gold surged above $4,000 per ounce, driven by economic uncertainties and a government shutdown, while markets await insights from the Fed's recent rate cuts and projections for further easing. Global political and economic developments continue to influence investor sentiment.
Federal Reserve officials indicated in December that interest rate cuts are likely by the end of 2024, with the path highly uncertain and dependent on economic conditions. The Federal Open Market Committee (FOMC) maintained rates between 5.25% and 5.5% and projected three quarter-point cuts by 2024's end. Despite improvements in inflation and supply chain issues, there is an "unusually elevated degree of uncertainty" about future policy, with the possibility of maintaining or even raising rates if inflation persists. The Fed also discussed reducing its bond holdings, with plans to wind down the process when appropriate. Markets, however, are anticipating more aggressive rate cuts than the Fed officials projected.
Gold prices dip as US government debt-limit-extensions talks resume, and traders and investors shun shorter-term US Treasury bills over fears of a US government default on that debt. The FOMC minutes may shed further light on the Fed's monetary policy going forward, and the US dollar index hits another two-month high. Silver prices are also lower, and the copper bears have the firm overall near-term technical advantage.