Welcome to Extreme Investor Network, where we provide you with unique insights and valuable information on the Stock Market, trading, and all things Wall Street. Today, we are diving into the recent developments from the Federal Reserve and how they are impacting the markets.
The Fed recently announced that the risks to achieving employment and inflation goals are roughly in balance. This uncertainty in the economic outlook has put Fed’s focus on the risks to both sides of its dual mandate. Additionally, Fed is continuing to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities. This move has added pressure on the debt market and has made Fed’s policy less dovish.
Following the Fed Interest Rate Decision, Treasury yields saw movement away from session lows. The yield of 2-year Treasuries settled around 4.23%, while the yield of 10-year Treasuries moved above 4.35%. In response, the U.S. Dollar Index climbed back above the 104.50 level post-announcement. Traders should keep an eye out for Powell’s press conference as his comments could impact the U.S. dollar’s movement.
Gold prices experienced a pullback after failing to break above the $2700 level, with traders shifting focus to the rebound of the U.S. dollar. Meanwhile, the SP500 settled near 5975 with traders maintaining a bullish sentiment. In the short term, the outcome of the upcoming election may have a greater impact on SP500 dynamics compared to the Fed’s policy outlook. However, Powell’s comments during today’s press conference could also play a significant role in market movements.
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