Fed Raises September Policy Interest Rate by 25 Basis Points as Markets Monitor
The interest rate decision made by the US Federal Reserve at its September meeting and the messages from Chairman Kewin Warsh are impacting the gold market.
The US Federal Reserve increased its September policy interest rate by 25 basis points, marking its first rate hike in approximately three years. Following the decision, a volatile trend was observed in global markets and gold prices, while all eyes turned to statements from Fed officials.
Fed's Interest Rate Decision and Statement Schedule
The Fed interest rate decision eagerly awaited by the markets was announced on Wednesday, September 16 at 21:00 Turkey time, with the bank raising the September policy rate by 25 basis points.
Investors are focused not only on the announced interest rate but also on the messages Fed Chairman Kewin Warsh will deliver regarding the upcoming period.
Expectations of Global Markets
In addition to the interest rate decision, messages regarding the monetary policy the Fed will follow in the future are also on the agenda of the markets.
Assessments regarding the inflation outlook and economic developments play an influential role in investors' future pricing decisions.
Latest Status in Spot Gold Prices
A volatile trend has been notable in spot gold prices both before and after the Fed decision.
Spot gold started the day at the level of 4,295 dollars, and after fluctuating between 4,275 and 4,340 dollars during the day, it traded at approximately the 4,323 dollar level.