GLD250516C305000
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SPDR Gold ETF Newsroom
The "New Federal Reserve News Agency" reports that the Federal Reserve will adjust its framework for interest rate setting, acknowledging that the era of long-term low interest rates may have come to an end.
Nick Timiraos stated that in a world where it is no longer certain whether there will be ultra-low interest rates, Powell is guiding a new Global Strategy. The Federal Reserve is about to adjust its framework for setting interest rates, which is unlikely to affect current policy decisions, but acknowledges that the era of 'long-term low rates' may have ended. This review by the Federal Reserve reflects on the shortcomings of the framework established in 2020—especially its failure to adapt to a wide range of economic scenarios, even when those scenarios seemed unlikely to occur at the time. This review is expected to retain the core concepts of the Federal Reserve's framework, including the 2% inflation target, and ensuring that the public believes the Federal Reserve will maintain low and stable inflation as a key mission.
CEO of JPMorgan: The possibility of a recession in the USA still exists, and the trade war will have lingering effects.
① Dimon pointed out that the possibility of a recession in the USA still exists, and tariff shocks continue to disrupt the Global economy; ② Dimon believes that tariff turmoil could lead to a loss of some investments to the USA, "there will definitely be some consequences. We have annoyed many people."
Powell predicts the direction of adjustments to the MMF framework and warns that future inflation volatility may remain high.
① The Federal Reserve is conducting a once-every-five-years review of its MMF policy framework, with results expected to be released by the end of summer; ② In the review five years ago, officials were more focused on addressing low inflation and employment gaps, resulting in a policy framework that does not align with the current economic conditions; ③ Powell emphasized that the 2% inflation target will not change.
Fed's Powell Cautions About Higher Long-term Rates as 'Supply Shocks' Provide Policy Challenges
Federal Reserve Chairman Powell: It is appropriate to reconsider the average inflation target, and long-term interest rates may rise.
More news is being continuously updated.
In the USA, the PPI for April rose 2.4% year-on-year, which is lower than expected, and decreased 0.5% month-on-month, marking the largest drop in five years.
In April, the PPI in the USA unexpectedly dropped significantly by 0.5%, marking the largest decline in five years, primarily due to the decline in corporate profit margins. This indicates that businesses are absorbing some of the impact from tariffs rather than passing on all costs to the Consumer.
Gold fell below $3,150, oil prices dropped over 3%, and the US dollar fell 0.7% against the Japanese yen.
European stocks slightly declined, India’s stock market continued to rise, US oil and Brent crude oil both dropped over 3%, spot Gold fell about 1%, the USD decreased by about 0.3%, and the USD against the Japanese yen fell about 0.7%.
Dollar Falls on Renewed Speculation Trump Wants to Engineer Weaker Currency -- Market Talk
The Fed Wants to Hit Its Inflation Target. Why It Might Not Get To. -- Barrons.com
Federal Reserve's Rate Cut Might Not Come Until December -- Market Talk
Peter Schiff Warns Qatar's $200 Billion Boeing Deal Could Spike US Inflation, Interest Rates — Says Treasury Sell-Off May Follow
Is the situation set? The US dollar is headed for long-term depreciation!
Deutsche Bank stated that current extreme valuations and positions make the dollar particularly susceptible to shocks. Data shows that the dollar has been overvalued relative to purchasing power parity (PPP) by more than 20% for three consecutive years, which is unprecedented in history. The valuation of USA Stocks has also reached historical highs compared to other Global markets, with a PE premium of up to 60% a few months ago.
Is it an eagle or a dove? Federal Reserve's Goolsbee: I am a "dog".
① With the unclear inflation outlook under the trade war, many Federal Reserve officials are currently waiting for more data before making any decisions on interest rate cuts; ② Chicago Fed President Goolsbee described himself on Wednesday as a "data dog," stating that he just wants to better assess the economic situation.
Making Trump happy! Can the wealthy sheikhs of the Middle East really come up with "trillions" so easily?
There is a significant gap between the economic and fiscal capabilities of the Gulf countries and these huge numbers they have committed to; Saudi Arabia's GDP is just slightly above one trillion dollars, and Qatar's GDP is only a little over two hundred billion dollars, while fluctuations in oil prices may further threaten the realization of these commitments.
The President of the San Francisco Federal Reserve, Daly, strongly supports Powell's hawkish view: The Federal Reserve is in no hurry to cut interest rates.
Mary Daly, the President of the Federal Reserve Bank of San Francisco, stated that the strength of the USA economy allows policymakers to patiently wait for more evidence to understand how the Trump administration's policies will affect businesses and households.
As the clouds of tariffs gradually disperse, Wall Street giants collectively boost the Crediting market.
After significant progress in the China-U.S. trade negotiations, Wall Street Analysts, including Goldman Sachs, are revising their full-year forecasts and becoming more optimistic about the market outlook.
Consumer Cos Up as Recession Fears Fade - Consumer Roundup
Trump: Treasury Secretary Besant understands the market, and once he appears on Television, everything rises.
Former USA President Trump has commented on the market again. He recently stated that USA Treasury Secretary Besent understands the market. As soon as Besent appears on Television, everything tends to rise. The USA stock market saw a slight increase in the short term, maintaining its upward trend for the day. The USD/CHF pair rose by 0.5% during the day, reported at 0.843. Besent's speech that day discussed trade negotiations. Furthermore, media reports on Wednesday cited informed sources stating that the USA would not seek a devaluation of the dollar in the trade agreement, with Besent being the only member responsible for handling these issues. It is also worth noting that Trump's comments on the USA stock market on Tuesday and Wednesday did not trigger the previous upward effect on the stock market when it was at a low point. On Wednesday, the S&P 500 Index barely rose.
Dollar Slips; Nasdaq Edges Up -- WSJ
Report: The USA will not seek a depreciation of the dollar in the trade agreement, and the dollar is expected to rise overall today.
Media reports citing informed sources indicate that the USA will not seek a devaluation of the USD in trade agreements. Secretary of the Treasury Basant is the only member responsible for dealing with these issues, with no one else assigned for MMF policy consultations, and negotiations can only take place in Basant's presence. The USD surged about 20 points in the short term, rising above 101, with an overall increase during the day.