USD dropped sharply due to PCE news
Gold increased due to war and PCE news
In fact, the Fed had to double interest rates and could not loosen policy.
Interest rate traders are currently weighing a variety of policy easing measures based on the belief that inflation will ease even as the US economy, especially the labor market, shows a broad recovery.
The Fed could lower its policy rate by another 75 basis points in 2024, but markets think a doubling is possible.
In fact, the Fed had to double interest rates and could not loosen policy.
Interest rate traders are currently weighing a variety of policy easing measures based on the belief that inflation will ease even as the US economy, especially the labor market, shows a broad recovery.
The Fed could lower its policy rate by another 75 basis points in 2024, but markets think a doubling is possible.
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