Interest rates .. How will the “federal” decisions affect gold and the dollar?

The Open Market Committee at the Federal Reserve Bank (US Central Bank) meets on Tuesday and Wednesday, 16 and 17 September, in an event awaiting investors and economists around the world to determine a specific path of monetary policy and American interest rates.

What is required of the Federal Reserve? The unemployment level. The annual inflation rate in the United States increased to 2.9% last August, to record its highest rate since January, while the energy cost for the first time increased in 7 months. The most dangerous facing the Federal Reserve is currently the interventions of President Donald Trump to influence monetary policy, as he demanded more than once to reduce interest rates, and the matter reached the threat to dismiss the bank president, Jerome Powell, which raised many questions about the independence of the largest financial institution in the world, and the repercussions of these interventions on The American economy in general." target ="_Blank"> Gold The interest rate is a counter -relationship; If the interest rates decrease, the gold prices rise, as the yellow metal becomes more attractive as a safe origin when the returns of other assets such as bonds or deposits." target ="_Blank"> The dollar , which has already been suffering for months, is expected to decrease its value further because the interest reduction reduces the attractiveness of investment in the assets denominated in the green currency.

What is expected from the next meeting? The interest by a quarter of a percentage to 4% -4.25%.

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