Will interest rates rise in 2021? Powell Says No Rate Hike, No Taper. Investors sold U.S. dollars after Federal Reserve Chairman Jerome Powell made it very clear on Tuesday that there will be no interest rate hikes or tapering in the foreseeable future.
According to the FOMC minutes, there has been a welcomed improvement in financial conditions with many market functioning indicators returning to pre-pandemic levels and “purchases were conducted at the minimum pace directed” as a result.
Gold climbed after U.S. President Donald Trump revived his attack on China, speculating it could have spread the coronavirus and threatening trade tariffs.
The Federal Reserve said Wednesday the coronavirus pandemic already has caused “tremendous” health and economic hardship, and warned the damage to the US economy will continue along with high unemployment.
Fed Expected to Leave Policy Unchanged – Traders are expecting a lot of fresh news from the Fed when it releases its monetary policy statement at 18:00 GMT.
Spot gold price rose 0.1 per cent to $1,709.73 per ounce by 0126 GMT (10:30 am in India). US gold futures climbed 0.2 per cent to $1,726.50 per ounce.