Minneapolis Federal Reserve Bank President Neel Kashkari mentioned about the key points he made last week, condemning the recent FOMC decision to move ahead with its targeted increase in the federal funds rate. Also, he expressed concerns over the space between key economic indicators and the goals of the FOMC.
Additionally, Chicago Federal Reserve Bank President Evans said that the inflation objective would be met even if 2.5% inflation rate is maintained.
The Federal Reserve announced that it would keep the federal funds rate low as long as the unemployment rate drops down below 6.5% or the inflation rate goes up by 2.5%. Also, the FOMC promises three rate hikes for 2017.
The US President Donald Trump said that he is planning to make amendments to the Republican Healthcare Bill by arranging for a lower drug cost through competitive bidding.
The price of gold oscillates around 1234.34 levels pushing the stochastic to lose its bullish momentum gradually on the 4-hour time frame. This forms a negative sign on the intraday trades followed by pushing the price to continue its correctional bearish track in the upcoming sessions.
Therefore, we will continue to suggest the bearish trend for today supported by the negative pressure provided by the oscillator which has entered 50.0 levels. With our next main target located at 1221.04, breaking this level will confirm the change in trend and move further down towards 1221.04 as the next main station. Once broken, we shall look at 1202.45 levels for any further directions.
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