US inflation expectations accelerate after Powell's speech
The US inflation expectations have accelerated following the Federal Reserve chairman Jerome Powell's historic Jackson Hole speech on inflation.
The 5-Year, 5-Year forward inflation expectation rate rose from 1.81% to 1.86% on Friday to hit the highest level since 2019.
On Thursday, Powell introduced inflation targeting. Under the new strategy, the central bank would allow inflation to rise above the 2% target for some time before raising interest rates.
The uptick in inflation expectations could add to the bullish tone around gold. The yellow metal reached a record high of $2,075 per ounce on Aug. 3 and has gained over 25% this year.
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.