Federal Reserve issues FOMC statement

AI desk brief

The Fed left the federal funds target range unchanged at 3.75%-4.00%, but the statement stayed hawkish: inflation is still described as elevated, the economy is growing strongly, and two governors dissented in favor of a 25bp hike. For metals, the message is modestly bearish near term because it supports a higher-for-longer rates backdrop and keeps real-yield pressure intact.

The Committee said uncertainty remains elevated, in part due to geopolitical developments, but domestic spending, productivity, capital investment and labor market conditions were characterized as resilient. The Fed signaled it wants more data before adjusting policy further, implying no near-term easing catalyst for gold or silver.