The Fed just cut interest rates, but it’s Powell’s press conference where things could get interesting. Watch it here at 2:30 p.m. EST…
The Fed’s September FOMC statement “hit the tape” at 2:00 p.m. EST.
The Fed has cut interest rates by 25 basis points.
Instead of a targeted range between 2.0% and 2.25%, we now have a targeted range between 1.75% and 2.0%.
The minute the FOMC statement was released came with the obligatory “gotta sell my gold and sell it now”:
Trading volume for gold was over 7,500 contracts between 2:00 p.m. EST and 2:01 p.m. EST.
Here’s the red-line of the statement, courtesy of ZH:
Of course inflation is “near” the Fed’s “symmetric” 2% target.
Isn’t it always?
Watch Jerome Powell’s press conference, beginning at approximately 2:30 p.m. EST:
Fifteen minutes in and we see the knee-jerk reaction is clearly to the downside:
Knee-jerk reactions are generally not the eventual direction of the move.
I think this will be the case, so I see weakness here as a dip.
There is still a full press conference from Powell.
At least this presser has a curve ball.
Has the Fed lost control?
A Powell stumble?
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.