The European Union’s latest round of sanctions against Russia, the sixteenth since the invasion of Ukraine, focuses on energy and metals, specifically targeting oil exports and aluminum imports. These measures introduce new complexities to already volatile commodity markets, raising questions about their ultimate impact.Energy Market Under PressureThe EU’s move to …
Read More »Fort Knox’s US Gold Reserve to be Audited, Administration Says
The US Administration announced plans to audit the nation’s gold reserves stored at Fort Knox in Kentucky. “We’re going to go to Fort Knox, the fabled Fort Knox, to make sure the gold is there,” the Administration stated.This move follows recent calls for an audit, fueled in part by comments …
Read More »Fed Official Flags Upside Inflation Risks, Warns of Stagflation Threat
St. Louis Fed President Alberto Musalem expressed concerns Thursday about the potential for persistent inflation and the risk of stagflation, posing a dual challenge to the US economy. He emphasized the need for confidence that inflation is headed back to the Fed’s 2% target before any further policy adjustments are …
Read More »Explainer: What the loss of Fed’s independence could mean
Trump as well as other Wall Street forces attempt to limit the Fed’s independence. Though it refrains from attempting to sway interest rate decisions, the White House wants more authority over Fed operations, including financial regulation. On February 12, Fed Chair Jerome H. Powell gave a testimony before the House …
Read More »Dollar Wobbles After Jobless Claims Disappoint, China Deal Hints Emerge
The US dollar stumbled on Thursday, giving up Wednesday’s gains and falling below 107.00 on the US Dollar Index (DXY). Hopes of a potential trade agreement with China, however, provided a glimmer of optimism for markets worried about tariffs. The DXY, measuring the dollar against six major currencies, currently sits …
Read More »Wall Street Rebounds, Gold Dips After FOMC Minutes
Wall Street’s stock market indices saw modest gains after the Federal Reserve released the results of its January meeting. Investors analyzed the results for clues about the future of interest rates and monetary policy. The general takeaway was that the meeting reiterated previous statements from the Fed and Chairman Jerome …
Read More »Canadian Dollar Under Pressure Amidst Inflation Concerns and Trade Tensions
The Canadian dollar (CAD) has weakened against the US dollar (USD), with the USD/CAD pair holding above 1.4200. This depreciation stems from a combination of factors, including concerns about US trade policy, uncertainty surrounding the Bank of Canada’s (BoC) interest rate decisions, and the US Federal Reserve’s (Fed) stance on …
Read More »FOMC Minutes Reveal Discussions on Balance Sheet, Inflation Risks
The minutes from the Federal Reserve’s January 28-29 meeting, where the FOMC unanimously decided to maintain the target interest rate range at 4.25%-4.5%, revealed discussions surrounding the balance sheet and potential risks to the inflation outlook.Balance Sheet Discussions and Debt Ceiling ConcernsThe minutes disclosed that Fed officials debated the timing …
Read More »Review of Risks Pinpointed by Recent FOMC Minutes
The Federal Open Market Committee (FOMC) minutes highlighted several risks in the current economic and monetary landscape:Monetary Policy Framework Review: The Fed’s monetary policy framework is under review, focusing on the Committee’s Statement on Longer-Run Goals and Monetary Policy Strategy, and policy communication practices. However, the 2 percent longer-run inflation …
Read More »FOMC Minutes reflect concerns over Trump’s policies
At January’s meeting, Fed officials debated whether it might be wise to slow or even pause the reduction of their balance sheet holdings, given that renewed concerns over the federal debt ceiling have come back into play. In addition, the Minutes showed the staff’s economic outlook remained largely unchanged from …
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