Powell Speech: What Will Move the Markets Tomorrow Night?
Tomorrow night, Jerome Powell will speak at the Greater Providence Chamber of Commerce Economic Outlook Luncheon in Rhode Island. Focusing on the US economic outlook, Powell's speech is expected to provide clearer guidance on the Fed's monetary policy and its impact on the local and national economy. While the main topics will be growth and inflation projections, the business audience will expect insights into how interest rate policy can impact their sectors, particularly financing and investment.
One area likely to be discussed is inflation and how the Fed plans to address it over the longer term. If Powell signals that inflation is starting to come under control, market expectations of monetary policy easing may arise. However, if he emphasizes that inflation remains a challenge, market participants could expect further interest rate hikes, which would impact investment and lending decisions.
Financial markets will be closely monitoring Powell's remarks on interest rates, as policy changes can directly impact the US dollar (DXY). If Powell demonstrates a hawkish stance, prioritizing reducing inflation through tighter policy, the DXY could strengthen. Conversely, if the policy tone is more dovish and hints at a possible interest rate cut, the dollar could weaken.
Meanwhile, gold and silver prices tend to move inversely with the dollar's strength. If Powell indicates a tighter interest rate policy, these two precious metals may experience price declines. Conversely, if there are signals that the Fed is more cautious about raising interest rates, gold and silver prices could surge, as investors will seek safe assets as a hedge against inflation and economic uncertainty. (ads)
Source: Newsmaker.id
