Silver Drops Over 2% after Fed's Decision
Silver prices fell below $37.5 per ounce on Wednesday, near three-week lows as investors reacted to the Fed's July rate decision.
The Federal Reserve held its benchmark interest rate steady at 4.25%-4.5% on Wednesday in a 9-2 vote, despite pressure from President Trump and dissent from governors Bowman and Waller. The governors advocated for easing due to cooling inflation and signs of labor market softening—the first dual dissent from governors since 1993.
However, the Fed’s statement noted slowing economic growth, persistent inflation, and elevated uncertainty, shifting from its more upbeat June outlook. Markets had widely expected no change, but investors are watching for clues on a potential September cut.
Meanwhile, Trump continued pressuring the Fed, calling for deep rate cuts and criticizing spending. Despite political noise, GDP grew a stronger-than-expected 3% in Q2, while inflation slowed, keeping rate cut hopes alive.
Source : Trading Economics
