The Federal Reserve is in a hurry, what should I do?

Today, the Fed officially announced the 75 basis points of interest rate hikes. In the interest rate resolution statement, the wording was tough and said that it would resolutely fight the risk of inflation.

2022 international gold price trend

Text | China Gold Network reporter Jiao Yang

This article is an original article of China Gold Network. The content is for reference only, and does not constitute operating suggestions or investment guidelines.

The Federal Reserve ’s interest rate hike was the largest interest rate hike since 1994. Fed’ s chairman Powell said at the press conference that continuous interest rate hikes would be appropriate. He said that the interest rate hike at 75 basis points is very large, and it is expected that this range of interest rate hikes will not be common. The next interest rate hike may be 50 basis points, or 75 basis points. Whether or not 75 basis points raising interest rates in July depends on the next economic data and changing economic conditions.

Powell revealed another key information -reducing inflation and realizing the soft landing of the US economy is becoming more challenging. The Fed will be committed to finding a way to reduce inflation, and inflation over the past year has been unexpectedly rising. However, the price of commodities, the impact of geographical situations, and the supply chain problem still do not belong to the category of the Federal Reserve.

International gold prices are more active in response to the Fed's fierce interest rate hike. French Industrial Bank has raised its prediction of international gold prices in the latest commodity outlook. It is expected that the average international gold price will be around $ 2,100/ounce in the third quarter of this year. As the actual interest rate is still in the negative area and the geographical situation, the French Industrial Bank continues to be optimistic about the attractiveness of gold avoidance. However, the bank also stated that from the long run, with the cooling pressure and the relief of the geopolitical situation, the price of gold may fall to $ 1,600/ounce by the end of 2023.

Lu Chao, an independent gold analyst, believes that after the Fed's 75 -basis point of interest rate hikes set the largest interest rate hike since 1994, U.S. stocks have not risen and the price of gold has also risen. This is a very abnormal phenomenon. He believes that the short -term market has not fully reflected the major and long -term impact of the Fed's strong interest rate hike on the financial market. The market needs to further clarify the long -term impact of the US Fed's radical interest rate hike in the panic. He believes that the market should take at least a week to feed the Fed's major and empty pressure brought by the Federal Reserve to suppress the level of interest rate hikes. Lu Chao expects that the price of gold should still have a wave of unilateral decline trends.

Huang Shiyun, a national registered senior gold analyst, pointed out that after the Federal Reserve's two -day policy discussion conference, the Federal Reserve decided to raise interest rate hikes 75 basis points, and at the same time excluded the possibility of 100 basis points in interest rate hikes. The 10 -year U.S. Treasury yields plummeted by 5.5%, and the US dollar index fell to around 104.6. The sharp decline in the US dollar index and yields supported the price of gold. The international gold price rebounded strongly.

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