The Federal Reserve
Although the Federal Reserve Chair Jerome Powell and the FED bowman’s speeches regarding the banking system, they did not provide any monetary policy or the economic outlook last night. As for the other two FED members, both sent mixed signals for the interest rate decision, with one supporting easing and another one supporting cautiousness. The FED’s Barr is still concerned about the inflation prices while still looking out for the weak labor market conditions.
Currently, the US shutdown is still ongoing in its second week, and neither party has shown any resolution on this matter yet. So as long as this continues, this will make the FED rate decision this month more challenging, especially with the nonfarm payroll data and consumer price index data still hanging around.
Ceasefire Talk
Despite having the ceasefire agreement approved by the Cabinet, the US has also sent 200 US troops there to monitor the progress and ensure both parties will be obligated to this agreement. For now, everyone is focused on the ceasefire, but the real question is, how long will this continue?
Therefore, the gold price dropped by roughly 2% last night due to these reasons, particularly following the recent ceasefire.
