The Federal Reserve is the institution that formulates monetary policy in the United States, and it is called the Federal Reserve System in the United States. Like China's central bank, its duty is to maintain a reasonable inflation level in the region and stabilize the financial market, that is, to adopt a tight monetary policy when inflation occurs, such as raising interest rates, and a loose monetary policy when deflation occurs, such as lowering interest rates. Whether the Fed's debt reduction is bearish or bullish on crude oil: short-term bearish, medium-term bullish. The sustained recovery of the American economy is a very likely event. Constantly releasing huge amounts of liquidity during the recovery process will not only help the economic recovery, but will aggravate inflation and offset the substantive achievements of the economic recovery. If you step on the brakes late, it will inevitably have a huge impact, and even lead to a serious financial crisis, which will have a serious impact on commodities, leading to a sharp drop in commodity prices, which will seriously dampen the enthusiasm of bulk trading and thus affect economic recovery.
So early harvest is better than late harvest. As long as the economic recovery process is not interrupted, the short-term impact on commodities can be completely absorbed and digested by the market. Commodities, including crude oil and metals, will return to a benign track of steady upward after a short period of benign adjustment. The upward slope is lower, which keeps cpi in a moderate rising range of 2%, benefiting the country and the people.
Therefore, on the whole, after the Federal Reserve recently announced the reduction of the scale of bond purchases, commodities will continue to evolve healthily in this super cycle and maintain a benign fluctuation for a long time. On the whole, gold and silver are under pressure because of the Federal Reserve's meeting on interest rates, as well as because of easing and tightening, and the rebound after the release of bad news.