The Fed kept rates unchanged between 3.50% and 3.75% in an uneventful FOMC Day.
Today’s session was very calm across most asset classes (except for one, guess which one) – not too surprising, given the humdrum Press Conference and rate decision.
Jerome Powell, whose term as Fed Chair extends only to two extra FOMC meetings (March 18 and April 29), had to defend against many questions about his recent investigation – the rest of his conference did not add much to his previews statements.
Metals are exploding higher after the conference as post-FOMC participation held tight for the meeting to end before joining the latest trend; Gold reached a new record high just shy of $5,400 and is closing the session around its peak..
What contributed to the dynamic was Powell’s inability to defend the recent move lower in US Dollar, prior to the meeting. Truly, as the Fed Chair insisted, it isn’t the Federal Reserve’s job, but Gold and Silver really loved that.
We’ll see if this extends beyond the announcement of the next Fed Chair. The announcement will be coming very shortly.
US stocks had no idea of where to go, while the Dollar did strengthen from its past-day tumble, but gave up some of its early-session gains during the Conference, ceding its seat to the Australian, Kiwi, and Canadian Dollars.
Regarding the CAD, the Bank of Canada also kept rates unchanged at 2.25%. It was only after Macklem’s press conference that the Loonie rallied, as the Governor defended the Fed with intensity and pointed to a more optimistic Canadian economy.
