Gold is below the EMA200 and EMA50 in the 4H timeframe. In case of an upward correction by the FOMC today, we can see a supply zone and sell within that zone with a suitable risk reward.
Donald Trump’s victory in the Tuesday presidential election could alter the economic outlook of the United States and influence the Federal Reserve’s policies in the coming months. Concerns about how much pressure Trump might exert on the U.S. central bank in his second term have resurfaced.
In his campaign, Trump has pledged to impose stricter tariffs on America’s trading partners, deport millions of unauthorized immigrants, and extend the tax cuts approved in 2017. If these policies are implemented, they could exert upward pressure on prices, wages, and budget deficits, creating significant challenges for the Federal Reserve.
Under these circumstances, the Federal Reserve will face increased obstacles in achieving its 2% inflation target while maintaining employment levels. Furthermore, if Trump continues his pattern of public criticism of Jerome Powell, the Fed chair, the U.S. central bank may find itself under political scrutiny.
The Federal Reserve officials have decided to lower interest rates by 25 basis points today, following a half-point reduction in September. The September forecasts indicate another quarter-point cut for December and a full one-percentage-point cut planned for 2025.
Following the rate announcement, Powell is likely to address questions in a press conference about the impact of the election on Fed policies. During Trump’s first term, he faced repeated criticism from him, and recently, Trump has criticized Powell for delays in policy decisions.
Donald Trump’s victory in the Tuesday presidential election could alter the economic outlook of the United States and influence the Federal Reserve’s policies in the coming months. Concerns about how much pressure Trump might exert on the U.S. central bank in his second term have resurfaced.
In his campaign, Trump has pledged to impose stricter tariffs on America’s trading partners, deport millions of unauthorized immigrants, and extend the tax cuts approved in 2017. If these policies are implemented, they could exert upward pressure on prices, wages, and budget deficits, creating significant challenges for the Federal Reserve.
Under these circumstances, the Federal Reserve will face increased obstacles in achieving its 2% inflation target while maintaining employment levels. Furthermore, if Trump continues his pattern of public criticism of Jerome Powell, the Fed chair, the U.S. central bank may find itself under political scrutiny.
The Federal Reserve officials have decided to lower interest rates by 25 basis points today, following a half-point reduction in September. The September forecasts indicate another quarter-point cut for December and a full one-percentage-point cut planned for 2025.
Following the rate announcement, Powell is likely to address questions in a press conference about the impact of the election on Fed policies. During Trump’s first term, he faced repeated criticism from him, and recently, Trump has criticized Powell for delays in policy decisions.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.