US consumer price inflation surprises to downside in July

US consumer price inflation surprises to downside in July

The numbers: The US consumer price index was unchanged in July, the Labor Department said Wednesday, compared with the 1.3% gain in the prior month. Economists polled by The Wall Street Journal had estimated a 0.2% advance in July. The rate of inflation in the 12 months ended in July retired to 8.5% from a … Read more

The US is not in a recession, another ‘unusually large’ hike in September, followed by a slowdown — Fed Chair Powell

The US is not in a recession, another ‘unusually large’ hike in September, followed by a slowdown — Fed Chair Powell

(Kitco News) The US is currently not in a recession, according to Federal Reserve Chair Jerome Powell. And that means another “unusually large” rate hike could be in store in September, followed by a slowdown in tightening. Powell gave a press conference after the US central bank raised rates by 75 basis points for the … Read more

Powell says no guarantee of soft landing for US economy

Powell says no guarantee of soft landing for US economy

Fed Chairman Jerome Powell on Wednesday said there was no guarantee that the central bank can engineer a soft landing for the US economy. “We think that there are pathways for us to achieve the path back to 2% inflation while still retaining a strong labor market. We believe we can do that,” Powell said, … Read more

Oil About To Post First Full Weekly Loss In 3 Months

Oil About To Post First Full Weekly Loss In 3 Months

As fears of a global recession deepen, oil prices may end the week with the first five-day consecutive losses since April, Bloomberg has reported, also noting the Fed’s intention to tighten monetary policy sharply further. Last week, the US central bank announced the biggest rate hike since 1994, at 0.75 percentage points, as it tries … Read more

Powell: ‘Big part of inflation’ won’t be affected by what the Fed does despite its ‘unconditional’ fight for price stability

Powell: ‘Big part of inflation’ won’t be affected by what the Fed does despite its ‘unconditional’ fight for price stability

(Kitco News) In another grilling testimony session, Federal Reserve Chair Jerome Powell admitted that the US central bank underestimated inflation and added that the Fed’s tools wouldn’t resolve a big part of the problem. Even though the Fed’s resolve to fight inflation is “unconditional,” there is only so much the Fed can do when battling … Read more

Fed’s Powell: Digital dollar could help USD maintain world’s reserve currency status

Fed’s Powell: Digital dollar could help USD maintain world’s reserve currency status

(Kitco News) A US central bank digital currency (CBDC) could help maintain the US dollar’s status as the world’s reserve currency, said Federal Reserve Chair Jerome Powell. The development of CBDCs by other countries could pose competition to the US dollar, Powell said in introductory remarks at the “International Roles of the US Dollar” conference, … Read more

Gold and bitcoin jump as Fed’s Powell takes 75bps hike off the table in June

Gold and bitcoin jump as Fed’s Powell takes 75bps hike off the table in June

(Kitco News) There was a significant rally in gold, bitcoin, and the US stock market as Federal Reserve Chair Jerome Powell ruled out a 75-basis-point rate hike at upcoming meetings, contradicting market expectations for June. Powell made his comments during a press conference that followed Fed’s decision to raise rates by 50 basis points — … Read more

Here’s what latest gold price pattern tells investors about the metal’s next move

Here’s what latest gold price pattern tells investors about the metal’s next move

(Kitco News) After touching $2,000 an ounce at the beginning of the week, gold tumbled more than $70 as the US dollar climbed alongside the US Treasury yields. With the latest trading pattern, analysts see some undeniably bullish signals. “Gold has been reaching new highs and consolidating. Right now, it is liquidating because of the … Read more

Fed chief Powell backs moving more quickly on interest-rate hikes

Fed chief Powell backs moving more quickly on interest-rate hikes

Federal Reserve Chairman Jerome Powell on Thursday joined the chorus of US central bankers who want to move faster on raising interest rates. “It is appropriate in my view to be moving a little more quickly,” Powell said during a discussion hosted by the International Monetary Fund in Washington. “I also think there’s something in … Read more