In much the same way as the US economy’s Manufacturing PMI, the health and pace of the German industrial sector is also the driving force not only for its domestic economy but really for that of the European Union as a whole.
Global Economic Outlook
European Central Bank (ECB) said it would Delay its First Post-Crisis interest Rate Hike until at Least the Middle of Next Year.
Gold Silver Reports (GSR) – The euro climbed higher against the U.S. dollar on Thursday, after the European Central Bank (ECB) said it would delay its first post-crisis interest rate hike until at least the middle of next year. In a move that was well-flagged, ECB President Mario Draghi also offered to pay banks if they borrow cash from the central bank and pass it on to households and firms.
Fed’s $4 Trillion Balance Sheet in Focus Ahead of Minutes From January Meeting
The U.S. dollar held onto gains against its global peers Wednesday ahead of Minutes from the Federal Reserve that are expected to confirm the bank’s recent signals on slower rate hikes and a more patient approach to monetary policy in the face of uncertain economic growth at home and notable weakening around the world.
Wall Street’s view on Trump’s talk of firing Fed Chair Jerome Powell: ‘Utter madness’
President D. Trump’s growing dissatisfaction with Federal Reserve Chairman Jerome Powell could be veering into dangerous territory. With the Fed embarked on a campaign to tighten monetary policy, the president has repeatedly attacked Powell, reportedly fearful that a volatile market – and the attendant possibility of an economic downturn – could endanger his reelection prospects.
Gold Steadies Near One Week High; All eyes on Fed
Gold Silver Reports (GSR) Spot gold was up 0.26 percent at $1,249.11 per ounce at 1:50 p.m., having earlier touched its highest level since Dec. 10 at $1,250.27, just short of a five-month peak of $1,250.55 hit last week.
Fed is Expected to Raise Interest Rates Wednesday
The Fed is expected to raise interest rates Wednesday by a quarter point, and the pressure is on for Fed Chairman Jerome Powell to sound dovish — but not too dovish. Fed officials are also expected to revisit their fed funds rate forecasts and roll back some of the rate hikes expected in the next several years.