Strong decline in gold and Turkish lira after Fed announcement By Investing.com

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© Reuters.

Investing.com – It fell sharply as the Federal Reserve announced its interest rate today. Despite keeping the interest stable, the tone of optimism about the end of the repercussions of Corona, with the increase in GDP expectations, had a negative impact on the gold price. Gold is now awaiting the Federal Reserve Chairman’s press conference.

The price of the dollar index rose, and the returns rose, which caused the Turkish lira to fall sharply.

This report means that the Fed may begin to tighten monetary policy prematurely, because the inflation rate rose by 1%, according to expectations, to rise to 3.4%.

The decline comes on the back of the Fed raising interest rates in 2023 and not 2024 as previously expected.

Fed members believe that by 2023 there will be at least two rate hikes, according to Dot Plot forecasts. Thirteen members of the FOMC expect the rate to rise in 2023, and a majority expect two rate hikes by this year. Only 5 members believe that the Fed will keep interest rates stable in 2023. 7 out of 13 believe that the Fed may start raising rates in 2022.

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