The Federal Reserve has made a statement about the recent economic data, causing a sudden change in the markets. Gold has become the strongest asset in this situation.

The Federal Reserve has made a statement about the recent economic data, causing a sudden change in the markets. Gold has become the strongest asset in this situation.
The Federal Reserve has made a statement about the recent economic data, causing a sudden change in the markets. Gold has become the strongest asset in this situation.

The Federal Reserve has made a statement about the recent economic data, causing a sudden change in the markets. Gold has become the strongest asset in this situation.


The Wall Street Journal reported that the Federal Reserve is likely to raise interest rates by only 25 basis points at their February meeting. This prediction was supported by data showing that inflation is decreasing. Investors largely agreed with this expectation.

It is expected that the US Federal Reserve will raise interest rates at its February and March meetings, according to FED SWAPS data.

Harker, a member of the US Federal Reserve, spoke after the release of US inflation data that met expectations. He acknowledged that reaching the 2% inflation target is far away but believes it will be achieved in two years. He also noted a slow decline in real estate inflation.

Harker was worried about what the US budget deficit could mean for the future.

The White House said that the December data shows it is possible for inflation to decline without damaging the economy and that a move to stable growth could occur.

The US markets opened lower, but eventually turned around and ended in the green. The Dow Jones Industrial Average rose by 0.34%, amounting to 117 points, while the Nasdaq index closed at 10921.93 points and the S&P 500 index gained 0.14%.

The US dollar index dropped 0.30%, settling at 102.555 when compared to other foreign currencies.

The price of gold increased on both futures and spot contracts. Futures contracts rose by 0.58%, to $1889.65 per ounce, while spot contracts increased by 0.61%, reaching $1890.00 an ounce.

Consumer Price Index

The Consumer Price Index for December rose by 6.5%, as predicted, after dropping to 7.1% in November.

The cost of living decreased by -0.1% from last month, contrary to predictions that it would stay the same after a slight increase of 0.1% in November.

The consumer price index (excluding food and energy) experienced a slowdown, rising by 5.7%, as predicted by experts. On a monthly basis, the index rose by only 0.3%, which was in line with expectations.


Unemployment data

The number of applications for unemployment benefits was lower than anticipated: 205 thousand compared to the expected 215 thousand. As a result, the four-week average for unemployment claims dropped from 214.25 thousand to 212.50 thousand.


Real income

In December, real income increased by 0.1%, following a 0.2% increase in November.


Federal now

The majority of bets (82.9%) predict that the Federal Reserve will raise interest rates by 25 basis points, while only 17.1% expect the Fed to keep rates unchanged at 50 basis points.

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