Fed Ohio Map Shirt
Markets rallied as the Fed withdrew stimulus measures in line with observers’ forecasts. Closing the trading session on December 15, each ounce of world gold spot increased by 6 USD to 1,777 USD. In last night’s trading session, the gold price at one point increased by nearly 30 USD, from 1,755 USD to 1,785 USD. The precious metal was supported by a weaker dollar after the US Federal Reserve said it would end pandemic-era stimulus in March. The Fed also signaled that it might raise rates three times next year.
Tai Wong, a precious metals trader in New York, said the market was right about the Fed’s move. Fed Ohio Map Shirt, For gold, the key technical mark is now at $1,750. A break below this mark could trigger a year-end sell-off. Gold prices initially fell nearly 1% to a 2-month low following the Fed’s announcement. However, then prices rose again due to the weakening of the USD.
The Fed thinks inflation next year will be around 2.6%, higher than the 2.2% forecast in September. High inflation will make gold more attractive. Fed Chairman Jerome Powell also said the US economy was improving rapidly, but warned that there was no sign of Covid-19 ending in the short term. In the US stock market, indexes also jumped as the Fed’s move matched forecasts.
The S&P 500 index closed the session on December 15, increasing 1.63% to 4,709 points. The Nasdaq Composite rose 2.15% to 15,565 points. Meanwhile, the DJIA closed at 35,927 points, up 1.08%. Before the Fed announced its decision, all three indexes were down. Apple shares closed up nearly 3%. Other big tech stocks like Microsoft and Netflix also rallied. Meanwhile, banking stocks only increased modestly. JPMorgan and Bank of America even fell.
The key takeaway from the Fed’s December 2021 policy meeting is not that it will stop buying stimulus bonds or signal three rate hikes in 2022 because of policy decisions This short-term has been “leaked” by Fed officials over the past month. According to MarketWatch, the big surprise was that the Fed took a 180-degree turn in its anti-inflation stance.
The December 15 statement after the Fed’s policy meeting and accompanying documents showed that “doves” – monetary policymakers who believe the risk of inflation is inflated – have completely “head up”. row”. Fed Ohio Map Shirt, members of the Fed have suddenly turned into “hawks” and no longer “doves”. The Fed’s monetary policymakers have agreed that fighting inflation is their number one priority.
They may be wary of tactics or timing, but not a strategy to beat inflation prematurely. The Fed is putting itself in a “fight” mode where inflation is identified as the “enemy” in this fight. For more than 30 years, the Fed’s “doves” have been correct that it is not inflation but unemployment that is the biggest threat to the US economy.
The “doves” had a successful final battle to force the Fed to reconsider the real costs that unemployment has on society and the many individuals that have been left behind by the economy. But now, the effects of the Covid-19 pandemic have forced the “doves” to accept that inflation is a bigger threat than unemployment. That’s a huge change in an institution as flexible as the Fed.
Fed Ohio Map Shirt
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