The Fed will use all tools to stabilize market confidence, the huge amount of loose material has buried hidden dangers for soaring inflation

In Daily Market Review, English
4 月 09, 2020

The Fed will use all tools to stabilize market confidence

The minutes of the Federal Reserve Board ’s public meeting on emergency interest rates in the middle of last month showed that the members of the Bureau believed that the impact of the new coronavirus epidemic has greatly deteriorated the economic prospects of the United States and constituted a huge uncertainty for the future. Therefore, the Bureau must use all tools to deal with it in the future. As for interest rates, the Bureau will be anchored at the bottom level for a longer period of time. Obviously, with the prospects of the new coronavirus epidemic unsettled, the United States interest rate negotiation can only try to stabilize market confidence, and it is difficult to give the market more inspiration for the time being.

 

the huge amount of loose material has buried hidden dangers for soaring inflation

The global stock market rose sharply on Monday due to the slowdown in the growth of new cases in several of the most severe areas in the world. However, investors have been prepared to buy gold in response to more uncertainties in the future, so the price of gold has risen sharply. However, countries will still introduce more stimulus measures to support the economy, while money managers have also slightly reduced the net long position of gold. However, analysts pointed out that continued easing measures in various countries may become a fuse that triggers a surge in market inflation in the future, and gold as the best tool to hedge inflation will significantly benefit.

 


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