Fed steady on rates. Timing of first rate hike remains data dependent. Gold edges higher.
29-Jul (USAGOLD) — Steady as she goes.
The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.
As I suggested in this morning’s DMR, inflation remains the sticking point.
Inflation continued to run below the Committee’s longer-run objective, partly reflecting earlier declines in energy prices and decreasing prices of non-energy imports. Market-based measures of inflation compensation remain low; survey‑based measures of longer-term inflation expectations have remained stable.
Also, note that they dropped “energy prices appear to have stabilized” because they have been trended lower pretty much since they made that statement in June.
Gold is up modestly on what is being interpreted as a modestly more dovish statement.
This entry was posted in Today's top gold news and opinion. Bookmark the permalink.