Economic advice for Powell, the Fed's current predicament, a guide provided, and Nvidia caught in China's dilemma.
The upcoming meeting of the US Federal Reserve, led by Chair Jerome Powell, is shrouded in anticipation, as the decisions made and statements delivered could have far-reaching implications for the global economy and stock market today.
In the previous meeting, Powell and the Fed showed concern over the weakness in the US labor market, with fewer new jobs than expected and a rising unemployment rate. In response, the Fed indicated signs of possible future interest rate cuts to stimulate the economy. The performance of stock markets could be influenced by Powell's hints about further rate cuts this year, particularly in response to the weakness of the US labor market.
The US central bank is also expected to announce a 0.25% interest rate cut in an upcoming meeting, a move that could boost stock markets and weaken the US dollar. However, there are concerns about renewed inflation, which could potentially influence the Fed's monetary policy decisions. Powell may also emphasize the data-dependency of the US central bank, citing renewed inflation, which could negatively impact stock markets.
Meanwhile, the focus ahead of the US central bank meeting is not only on the Fed's interest rate decision but also on the US chip giant, Nvidia, due to China's embargo against it. At least 13% of Nvidia's revenue is officially reported to be lost due to China's embargo, but it is likely that Nvidia has been supplying to China via hubs like Singapore, which could mean more revenue loss than the official figure suggests. The embargo against Nvidia could potentially impact the global tech industry.
On a separate note, the gold market is currently experiencing a rally, with prices on the rise. However, there are warnings of a potential sudden turn in the gold price rally. The reasons for this are not entirely clear, but the uncertainty surrounding the Fed's interest rate decision and the global economy could play a role.
In conclusion, the upcoming Fed meeting is set to be a significant event, with potential impacts on the global economy, financial markets, and the tech industry. The decisions made and statements delivered by Powell will be closely watched, as they could shape the direction of the US economy and global markets in the coming months.
Read also:
- Catastrophe at a U.S. Steel facility in Pennsylvania results in the loss of two lives. crucial details unveiled
- Manipulating Sympathy: Exploiting Victimhood for Personal Gain
- Prices remain a concern for the Germans
- Auto Industry Updates: Geotab, C2A, Deloitte, NOVOSENSE, Soracom, and Panasonic in Focus
