Unanimous Fed Holds Rates As Expected; Does Not Hint At Imminent March Rate Hike

Jon Alternative Media, Blogosphere, Economy, Fiscal Policies, Gold, Market Commentary, Precious Metals

With gold gaining, dollar declining, a flattening yield curve, and a market not buying The Fed’s 3-hikes plan, Janet and her band of merry-men (and women) had to do something to get investors’ confidence back to signal ‘March is live’, as Trumponomics dominates the conversation, but it appears they failed.
FED SAYS CONSUMER, BUSINESS SENTIMENT HAVE IMPROVED OF LATE FED REPEATS NEAR-TERM RISKS TO OUTLOOK `ROUGHLY BALANCED’ FED SAYS MARKET-BASED INFLATION GAUGES `REMAIN LOW’ It may have failed, however, because the biggest highlight of the February statement (link) appears to be the line that “Market-based measures of inflation compensation remain low“, which has been revised from the December version to remove the “measures have moved up considerably” language in what may be a dovish revision, and as such it appears the Fed is converging with the market’s view of just 2 rate hikes in 2017.

This post was published at Zero Hedge on Feb 1, 2017.