The stakes are absolutely high, and the Fed cannot risk getting this decision wrong, as they did in 2021 with their misplaced emphasis on “temporary inflation” – because it could ultimately make or break the economy.
Ahead of this week’s major market-moving decision, a long list of the world’s most powerful Wall Street banks upped their bets on the Federal Reserve by making an aggressive 50 basis point cut on Wednesday, with traders now betting on the chances of a jumbo cut of approximately 64%.
The importance of this cannot be understated – especially considering it was just a week ago when traders were pricing in an 18% chance of a half-point cut.
Gold’s Unstoppable Rise: 33 Record Highs and Counting on Growing as Fed Rate Cut Becomes Major
The potential for a bigger-than-expected Fed rate cut sent gold prices soaring to a new record high of $2,590 per ounce on Monday, surpassing precious metals’ previous record high of $2,585 per ounce in the previous period. trading session on Friday.
Gold has been on a parabolic run since last October, rising from close to the $1,800 level and hitting back-to-back all-time highs – not once, not twice, not three times, but so far this year at 33 different occasions. .
Yes, you read that correctly. That’s 33 all-time highs so far this year.