$BTC

The impact of economic events, such as inflation data or gold and interest rates, on future monetary policies can be summarized as follows:

1- Inflation data (such as the Consumer Price Index - CPI):

If inflation rises, the central bank (such as the Federal Reserve) tends to raise interest rates to try to curb inflation.

If inflation falls, the central bank may move towards stabilizing or lowering interest rates to support economic growth.

2- Stability or volatility of gold and dollar prices:

Rising gold and a weak dollar often indicate investor concerns about inflation or recession, which may prompt central banks to be cautious in their actions.

Falling gold with a strong dollar may enhance market confidence and push monetary policy towards tightening if it coincides with good economic growth.

3- Current interest rate movements:

If the Federal Reserve keeps interest rates as they are, that usually indicates monitoring of the markets and data before making new decisions.

The market reacts to forward guidance, which is what the bank expects regarding future policy.

In summary 🫴

Strong economic data (growth, employment, high inflation) 🫴 tends to tighten monetary policy

Weak data or slowdown 🫴 pushes towards easing monetary policy 🫴