Federal Reserve releases rate decision and very positive data from Investing.com

Investing.com – The Federal Reserve kept the rate stable between 0.25% and 0.00%.

All eyes are now on the Fed chairman’s speech, awaiting further signs of bond buying programs.

The 10-year yield hit 1.68%, the highest in 13 months. This prompted the United States to move up, but it is still unable to regain the 92 level.

And declined due to strength in bonds and the US dollar index.

The US central bank has sharply raised its forecast for the US economy, but has recognized that the interest rate will remain low near zero until 2023.

The Fed maintained its monthly $ 120 billion bond purchase program. But the vision of central bank members for the future of the economy has changed.

“After the pace of economic recovery has moderated, there are signs that economic activity has increased recently, although the sectors affected by the epidemic remain weak.” And inflation remains below the 2% target. “

The Fed now expects GDP to reach 6.5% in 2021, before declining in the coming years, according to the economic expectations of members of the Open Market Committee. The average estimate indicates a strong improvement, against 4.2% last December.

Economic expectations for 2022 and 2023 fell from 3.3% to 2.2%, and the previous long-term range was 2.3%.

MEPs expect the unemployment rate to drop to 4.5% from 6.2%. Against 5% previously. The next two years will see rates of 4.2% and 3.7%, and the rate was previously 4%.

Inflation expectations have risen, and the committee now sees an inflation rate of 2.2% this year, according to the personal consumption expenditure index, and the rate reaches 2% in 2022, and rises to 2, 1% for the following year, and those expectations are greater than 2%.

The price of gold has returned to the rise after the Fed data, thanks to the news of high inflation, and generally gold is a safe haven to hedge against inflation, which hurts the economy. purchasing power of money and enhances the status of gold, which is a store of value.

And has recovered some of its losses recorded today, due to the weakness of the dollar index, and high expectations on the US economy.

While it has jumped more than 200 points, one currency has risen after suffering a decline since Monday.