Gold 
“The Federal Reserve is not likely to change its hawkish stance anytime soon.
Tomorrow (Mar. 7) and day after (Mar. 8), Fed chair Jerome Powell participates in hearings by the Senate Banking Committee and the House Financial Services panel respectively, to discuss the bank’s latest semiannual “Monetary Policy Report.” Published on Friday (Mar. 3), the report reaffirmed the central bank’s commitment to bring inflation down to 2%—the latest reading from January shows it stands at 6.4%. When questioned on rate hikes, Powell is therefore expected to say more interest rate hikes are on the horizon.
A few months ago, there was chatter about fewer interest rate hikes. But that was when it appeared that the US economy was slowing down and inflation was cooling. In January, though, hopes of disinflation were dashed as new data showed jobs growth and core inflation rising. So, it’s likely that the Fed will keep increasing rates for longer than previously expected.
Of course, anything Powell says will be a mere suggestion and not a definitive indication. The Fed’s decision will be informed by a bunch of data—jobs, consumer inflation, retail sales, and more—which are yet to be released.
Calendar: The data before the interest rate decision
March 10: Jobs report. After a surprisingly strong January report, if jobs growth is stronger than expected in February, economists expect an additional rate hike in July, beyond the three which are already expected for March, May, and June.
March 14: Consumer inflation report. Although better than last year, inflation could be plateauing at well above the Fed’s 2% annual goal. It could remain as high as January, suggesting the Fed has to maintain a tight fist.
March 15: Retail sales data. A jump would signal the central bank may need to keep rates high.
March 21-22: Interest rate decision. The Federal Open Market Committee (FOMC) will meet to set interest rates. Futures data imply a 72% chance the Fed will raise interest rates by 25 basis points at this meeting.”
*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
