“Urgent: Fed Chairman speaks on US Central Bank’s interest rate and inflation plans, affecting gold market”

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Speaking yet, but at 15:02 GMT, it loses most of its gains and records $1,961 an ounce, while it records 103.267, and instant gold transactions record $1,959 an ounce.

The Fed’s statements this week indicated the continuation of the tightening tone from the US Central Bank, and the continuation of raising interest rates, or at least keeping them at high levels for a long time, which harmed its progress and pushed it to lose $ 125 since hitting a record earlier this year.

The most important statements:

• Inflation is well above our target
• High inflation is a difficulty as it reduces purchasing power especially for those facing economic difficulties
• The Fed is determined to return to 2%.
• The banking system is strong and prepared to deal with the risks it may face in the future
• Powell said interest rates probably should not rise so strongly, due to restrictions on banks’ credit activity.

• The economy may experience supply constraints, but this is hard to predict.
• The Fed’s tools help achieve price stability and the stability of the global financial system
• The relationship between the labor market and inflation is not much different than it was before the global pandemic.
• The labor market was not one of the factors that contributed to raising inflation at its beginning, but with progress, the labor market will have a strong role in influencing inflation.
• The Fed’s future expectations depend on the surrounding conditions, and this helps policy makers to take a clearer view of the development of events.
• Current data supports the Committee’s view that it will take longer for inflation to come down.
• We have plenty of time to examine current data and forecasts.
• Monetary policy is now tightening, and we have concerns about the late effects of this tightening.
• The interest path that the markets are plotting is different from the one that the Fed is now plotting.
• The Fed had expected further tightening until recently.

Market monitoring

On the market side, gold is moving strongly with new statements by Treasury Secretary Janet Yellen, who told bank executives that mergers and acquisitions may be necessary, and Powell said that interest may not rise as strongly.

Gold rose at 15:15 GMT, with futures transactions at $ 1,962 an ounce.

Markets are reviewing interest rate hike expectations in June, and traders are strongly reducing interest rate hike expectations, as well as swap interest rate hike speculations, which reached 40% yesterday.

There are now reports of stalled talks on raising the US debt ceiling.

Follow the details here:

on the sidelines

Economist Mohamed El-Erian says that there is a paradox between Jerome Powell, the current president of the Federal Reserve, and Bernanke, the former president.

The irony is that Powell reads from a piece of paper, and answers pre-prepared questions that are agreed upon, and El-Erian says that this is normal after the problems and failures in communication that the Federal Reserve suffered from.