World Markets On Hold Ahead of FOMC Decision

Jon Banking, Economy, Fiscal Policies, Gold, Market Commentary, Precious Metals, Silver

(Kitco News) – World stock markets were mostly weaker in subdued trading Wednesday. U. S. stock indexes are pointed toward narrowly mixed openings when the U. S. day session begins.
The marketplace later today gets the results of what is arguably the most important economic event of the month: the U. S. Federal Reserve FOMC meeting, which began Tuesday morning and ends Wednesday afternoon with a statement. Fed Chair Janet Yellen will also hold a press conference after the statement is released at 2:00 p.m. EDT.
Most believe the Fed will raise interest rates for the first time in a year. In fact, the Fed funds futures market shows a 100% chance the Fed will raise U. S. interest rates today. With a Fed rate hike so fully expected, markets have mostly factored it into their price structures. Thus, don’t be surprised to see many markets show a ‘buy the rumor, sell the fact’ scenario following the actual announcement of the Fed rate hike. In gold and silver markets’ case, it would be ‘sell the rumor, buy the fact.’

This post was published at Wall Street Examiner on December 14, 2016.