Markets are now pricing in a one-in-three chance the Fed might hike by a full 50 basis points in March and the prospect of rates reaching 1.5% by year end.
The Treasuries yield curve or the spread between short-term and long-term interest rates looks set to be the flattest at the beginning of a Fed tightening cycle
The prospect that inflation will be held in check may weigh against the need for the Federal Reserve to speed up the process of policy tightening as much as some had believed they might
By Asha Sistla (Reuters) - Gold prices edged up on Wednesday to hover near their highest in more than two weeks on prospects of higher inflation, although trade was range-bound as investors exercised caution ahead of the U.S. Federal Reserve s two-day policy meet outcome. Spot gold was up 0.2% at $1,734.00 per ounce by 0310 GMT, having touched a high of $1,740.90 since March 1. U.S. gold futures were up 0.1% to $1,731.90. Gold appears to be finding few friends finally even as U.S. yields and the dollar continue to grind higher . perhaps gold s inflation hedging role is quietly returning to prominence and that is supporting prices, said OANDA senior market analyst Jeffrey Halley.
yes, this is a critical point. nobody knows when the next recession is coming. no question, there are serious head winds of great concerns. you are right, they date back to trump and his trade war. our manufacturing sector has experienced falling out over the past couple of quarters. we don t know when it is coming. we don t know it is out there and the smart play would be to get ready for the next session. it is going to be real significance pressure in that regard. monetary space that s the rule that the federal reserve punch back is some what limited because interest rate is so low. but, we are going to go into the recession of the gdp racial which is much higher in the past cht th . we should be laying the ground work now. some of that ground works, we talked about fed rates.