Federal Reserve Members’ Statements and Expectations Confuse Markets, Leading to Gold Decline and Dollar Rise

Investing.com – A number of Federal Reserve members, speaking Thursday night and early Friday morning, agreed on one principle: The Fed’s job is far from over.

Federalist Harker said:

• The economy still needs more monetary tightening to counter the rise.
• Once the Fed reaches its final target, it will have to keep interest rates high for quite some time.
• The economy is strong enough to withstand a rate hike.
• Inflation will not reach the Fed’s 2% target until 2025.
• The Fed is close to where it should stop raising interest rates.
• In the midst of uncertainty, tread carefully.
• Inflationary pressures are slowly easing.
• It will reach 4.4%.
• The repercussions of the banking crisis are not yet clear.

While the Federalist Bostick said:

• Monetary policy is now in the tightening zone.
• Credit restrictions will do the Fed’s job.
• Inflation will reach 3.5%-3.9% by the end of this year.

While Bowman said:

• We see that the economy is strong
• We must do more to reduce inflation

Meester said:

• We must raise rates above 5% to reach the 2% inflation target.
• We don’t get to a decision about interest in May now, until after the board meeting.
• We will evaluate the benefit at our next meeting.
• As to how far above 5% interest goes and how long the rate stays above that level depends entirely on the performance of the economy.
• We will discuss the banking crisis at the next meeting.
• We will assess at our meeting in May the magnitude and duration of the current tightening cycle.
• Economic growth will be weaker this year and below trend.
• Economic growth will be slower, but the economy will not go into recession.
• The economy is on a very slow growth trajectory, and it wouldn’t take a major event to send it into recession.
• The unemployment rate will reach 4.50%-4.75%.
• Inflation will reach 3.75% this year.
• Inflation is still high and more needs to be done.
• The Fed will raise rates above 5% and keep the rate above this level for a long time.
• The Fed is close to ending its rate hike journey.

Williams said:

• There are signs of a slowdown in the labor market but it is very strong.
• It will take two factors to get inflation to its 2% target.
• Unemployment will rise to 4.00%-4.50% over the next year.
• US inflation remains strongly elevated, and the Fed is working to ease price pressures.
• The Fed needs time to bring down inflation.
• Inflation will reach 3.25% this year.

Markets are responding

The American is heading for its first weekly gain in a while, and the index is now recording at 9:57 GMT 101.662. While the price declines to record $ 1,996 an ounce, and records a price of $ 1,986 an ounce.

Oil continues its decline today, to record $80.96 a barrel, and West Texas Intermediate crude records $77.28 a barrel.