gold<\/a> was struggling to find momentum. Spot gold last traded at $4,267.30 an ounce, up 0.27% on the day.<\/p>\nWarsh struck a hawkish tone from the beginning of his press conference, saying that price stability will be the central bank\u2019s \u201cNorth Star.\u201d<\/p>\n
\u201cThe way to get monetary policy right is to deliver on the remit that Congress gave us to deliver on price stability,\u201d he said.<\/p>\n
\u2018It was clear from the policy statement, the Dot Plot, and the press conference that the Fed\u2019s decision-making calculus has shifted from \u201cshould we cut\u201d at 2026\u2019s start to \u201cshould we hike\u201d at mid-year,\u201d said Bill Adams, Chief U.S. Economist, Fifth Third Commercial Bank<\/p>\n
Warsh also announced that he will create five task forces to examine different aspects of the central bank\u2019s monetary policy process: Fed communication, the Fed’s balance sheet, the use of and reliance on existing data sources, productivity and jobs in an era of transformation, and the Fed’s inflation framework.<\/p>\n
“What we’ve given markets is a new chapter for the central bank, some fresh thinking,” he said.<\/p>\n
Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management, said the task forces will set the stage for far-reaching changes in the future.<\/p>\n
\u201cBy taking more time and attempting to build consensus, Kevin Warsh can begin the process of reducing the Fed\u2019s current high level of transparency, revising its inflation framework, and scaling back its extensive use of the balance sheet,\u201d he said in a note. \u201cVery few people have mentioned the idea of significantly reducing the Fed’s balance sheet \u2014 de facto tightening \u2014 while simultaneously cutting interest rates, because at face value it seems contradictory. But if your goal is to reduce short-term interest rates \u2014 or keep them unchanged in the face of compelling reasons to raise them, such as much-too-high inflation \u2014 while slowing financial markets so they don\u2019t overheat, you can simultaneously slam on the brakes (significantly reduce the balance sheet) and slowly press the gas pedal (lower interest rates gradually) and achieve both goals in a less obvious way.\u201d<\/p>\n
Disclaimer:\u00a0The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and\/ or damages arising from the use of this publication.<\/p>\n","protected":false},"excerpt":{"rendered":"(Kitco News) – The gold market is trying to find its footing after the Federal Reserve left interest…\n","protected":false},"author":2,"featured_media":744627,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[7900,7888,45,49,48,7892,7894,7887,7897,7890,7889,7891,7898,3242,7899,2977,7879,7901,7884,7902,7886,7881,7882,7880,7883,714,7885,7896,7903,3243,7895,7893],"class_list":["post-744626","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bank-forecasts","tag-bitcoin-news","tag-business","tag-ca","tag-canada","tag-central-banks","tag-charts","tag-crypto-news","tag-currency","tag-economic-reports","tag-ethereum-news","tag-forecasts","tag-global-economy","tag-gold","tag-international-policy","tag-interviews","tag-kitco-news","tag-market-nugget","tag-metals","tag-mining-minutes","tag-mining-news","tag-palladium","tag-pgm","tag-platinum","tag-platinum-group-metals","tag-politics","tag-precious-metals","tag-rare-earth-metals","tag-roundups","tag-silver","tag-tech-metals","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/744626","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=744626"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/744626\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/744627"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=744626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=744626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=744626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}