The price of gold has traded to fresh yearly highs during every single month so far in 2020, and it remains to be seen if the bullish behavior will persist in June amid the limited reaction to the Fed testimony.
Nevertheless, the prepared remarks for Congress suggest the Federal Open Market Committee (FOMC) has little intention of deploying more non-standard measures even though the central bank remains “committed to using our full range of tools” as Chairman Powell insists that “when this crisis is behind us, we will put them away.” the FOMC vows to increase its holding of treasury securities and agency mortgage backed securities over coming months at the current pace. FOMC may scale back the dovish guidance as the update to the Summary of Economic Projections (SEP) show “a general expectation of an economic recovery beginning in the second half of this year(recession).
Nevertheless, the prepared remarks for Congress suggest the Federal Open Market Committee (FOMC) has little intention of deploying more non-standard measures even though the central bank remains “committed to using our full range of tools” as Chairman Powell insists that “when this crisis is behind us, we will put them away.” the FOMC vows to increase its holding of treasury securities and agency mortgage backed securities over coming months at the current pace. FOMC may scale back the dovish guidance as the update to the Summary of Economic Projections (SEP) show “a general expectation of an economic recovery beginning in the second half of this year(recession).