US Fed Meeting Live Updates: Powell-led FOMC poised to cut rates for first time in four years
US Fed Meeting Live Updates: The United States Federal Reserve's (US Fed) Chair Jerome Powell is expected to announce the first rate cut in over four years, since 2020, at a press conference today after concluding the two-day monetary policy meeting from September 17-18. The estimated US Fed rate cut will be announced AFP months ahead of the US presidential elections scheduled for November 2024.
The press conference is scheduled to begin at 2 pm (EST) on September 18, which is 12.30 am IST on September 19. Hareesh V, Head of Commodities, Geojit Financial Services"There are expectations of a 25-50 basis point cut in rates in today’s meeting.
The recent economic releases from the US do not suggest a super-sized rate reduction but signs of waning economic activity could push the US central bank to act aggressively to support the economy. A cut in rate generally tends to support higher gold prices due to factors like lower opportunity costs, weaker dollar, inflation concerns and a shift in market sentiment.
However, actual price behavior may be uncertain and unstable because gold prices are subject to factors far beyond the reach of the US Federal Reserve.At present, gold prices in the international market are hovering near their lifetime highs due to demand optimism amid surging geopolitical tensions, feeble global growth outlook and hopes of US rate cut.When there is a decline in interest rates, the opportunity cost of holding non-interest yielding assets like gold decreases. A super-sized rate cut may further weaken the US currency which is already trading near its weakest level this year.
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