"Although this move was widely expected, its impact on markets was profound, especially amid growing concerns about weakness in the U.S. labour market and slowing employment. In my view, this decision marks a turning point in the monetary policy cycle, as the Fed balances the risks of persistent inflation on one hand and recession with job losses on the other. In this context, gold remains a primary beneficiary as a hedge in an environment dominated by uncertainty."
"However, Jerome Powell's remarks revealed a degree of caution that cannot be overlooked. While he confirmed that the cut was aimed at "risk management," he also stressed that future decisions will be taken "meeting by meeting," indicating that the Fed does not intend to move quickly into an aggressive easing cycle as some investors believe. I see this dual message placing markets in a complex equation:"
The Federal Reserve's 25 basis point rate cut in September, the first since early 2025, supported gold prices near $3,720 amid market concern about weakening U.S. labour conditions and slowing employment. The move signals a potential turning point in the monetary policy cycle as the Fed weighs persistent inflation risks against recession and job losses. Gold serves as a hedge amid prevailing uncertainty. Powell emphasized the cut as risk management and indicated decisions will be taken meeting by meeting, tempering expectations of rapid easing. Rising geopolitical tensions and a stronger dollar create opposing pressures on gold's near-term path.
Read at London Business News | Londonlovesbusiness.com
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