Powell’s speech yesterday stirred the markets. He pointed out that inflation is still above target and that the impact of tariffs might be more persistent than expected. This pushed back hopes for a near term rate cut.
Gold took the spotlight after his comments about the growing risks of a trade war. It reached a new all time high as gram gold tested above 4100 TL. It’s already up around 28 percent this year, surpassing the 27 percent gain in 2024.
Trump, on the other hand, didn’t hold back. He said Jerome Powell is always too late and wrong. He also stated that Powell’s termination cannot come fast enough and that the #Fed should have lowered rates long ago.
The Fed remains cautious, political pressure is rising, and gold continues to benefit from the uncertainty.
