Finally there is someone at the Fed that has some common sense…maybe?
Atlanta FED President Dennis Lockhart said today he would not discuss his opinion of what the U.S. central bank will likely do at its September, November, or December meetings as “financial markets seem to be very sensitive to remarks of Fed speakers at the moment.” Sounds great, I feel better.
What he did share was that he believed that recent economic data “warrant a serious discussion of a policy rate increase.”
Really, on what promising data did I miss?
So even though he said he wouldn’t give an opinion on what the Fed should do at the next three meetings, he’s thinking a rate hike might be appropriate?
Hold on, I’m scratching my head. Did we all get that? I need to read that a second time.
Today’s CME FED Watch tool predicts a 24 percent chance of a rate hike in September.
Looking at the markets this morning, all four metals are in negative territory. Platinum and Palladium are taking the biggest hit. Silver might have caught what Hillary has that has put it on the shelf for a few days. Gold’s recent bullish momentum seems to be fading away as we look to test the next level of support at $1,318 in the December contract.
Overall, the fear of a September hike has the precious metal market in a sell bias until the next Fed meeting (or next Fed comment).
Have a wonderful Monday.
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