Judging from the market reaction, COMEX6 gold futures in June closed down by 8.50 USD, or 0.7%, to 1.248.50 USD/oz after the announcement of the meeting, the lowest closing price since April 5. The dollar index rose to its highest level since April 24. The three major American stock indexes rose in the short term, and the Dow recovered its intraday decline. The yield of US 10-year treasury bonds rose by 2. 1BP for a short time, reaching a new high of 2.3 14%.
In terms of inflation, the CPI data has dropped to 2.4% in April, and the core PCE data, the most important indicator regulated by the Federal Reserve, has also dropped to 1.56%, which is lower than the long-term goal of FOMC of 2%. Although there was a correction in the economic trend in March and April, it did not have a substantial impact on the expectation of raising interest rates. It is expected that the future economic trend will justify the gradual interest rate increase.
As for the time and scale of further adjusting the target range of the federal funds interest rate in the future, it depends on the actual and expected economic situation relative to the employment maximization and the 2% inflation target. In the evaluation process, the Committee will consider various information, including indicators of the labor market environment, inflationary pressures and expectations, financial and international development data, etc.