Buying time
The US Federal Reserve’s decision to hold interest rates steady is less a mark of confidence than an admission of constraint.
The US Federal Reserve’s decision to hold interest rates steady is less a mark of confidence than an admission of constraint.
The US Federal Reserve, in its latest policy meeting held on January 27-28, decided to keep its key benchmark interest rates unchanged at 3.5 to 3.75 per cent, citing low job gains, signs of stabilisation in the labour market, and inflation that remains somewhat elevated.
The latest interest rate cut by the US Federal Reserve should have been a routine step in a predictable easing cycle.
The price of 10 grams of 24-carat gold closed the week at Rs 1,20,100 down from Rs 1,20,770 last week, according to data published by the India Bullion and Jewellers Association (IBJA).
Gold and silver prices opened sharply lower on Thursday on the Multi Commodity Exchange (MCX) after the US Federal Reserve announced a 25-basis points rate cut.
The US Federal Reserve’s decision to maintain interest rates between 5.25 and 5.50 per cent has left the financial world in a state of uncertainty.
Even though the pause decision of the US Federal Reserve was on expected lines, the commentary was not hawkish as the market feared, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
This duality of tightening and loosening monetary policy underscores the Fed's delicate task. It is clear that the Fed is well aware of the inflation dragon it's trying to slay.
Indices of the domestic equities market extended their gains in the morning trade, tracking strong global cues on Monday. There is a possibility that there would be a rate hike by US Federal Reserve the next month. With the GDP for the fourth quarter anticipated this week, it is expected that GDP for FY23 will surpass 7 per cent.
US central bank's Vice Chair Lael Brainard has said that US Federal Reserve is expected to continue to keep its monetary policy restrictive for some time in order to ensure that high inflation numbers move back to target over time.
