As we expected a neutral stance with dovish tone from Federal Reserve chair Jerome Powell http://www.advisorymandi.com/editors-pick/expect-a-neutral-stance-from-fed-1299 on two days Fed Open Market Committee on Thursday. The Federal Reserve has come with the same stance as they saw inflation at 1.5% in FY19-20 down from 1.8% projected in March.
As the US- China war escalation a fear of economic slowdown was looming over the policymakers and falling crude oil prices were acting as a catalyst for a neutral stance with a dovish tone for coming quarters. Out of 17 policymakers, seven has advocated for a cut by 50 basis points by the end of 2019 while eight were looking satisfied with a cut of 25 basis points only. Fed’s monetary policy committee is expecting not more than 2% inflation target for next year as well.
Neutral stance by policymakers has thrust the Gold prices to 33,800 levels while the second precious metal has reached to 38,080 levels. Global and other Asian markets are trading in green while Nifty 50 gained 1.20% or 140 points.