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All eyes on Fed
Asian stocks are getting quiet waiting for the new Fed’s decision about tightening monetary policy and soon interest rates hikes. Japan’s Nikkei 225 slipped 0.37%, and MSCI’s broadest index of Asia-Pacific outside Japan decreased by 0.1%.
Gold price is floating at the two-months highs as investors are concerned about Fed’s possible harsh inflation measures. Today’s Federal Reserve’s meeting is going to roll out the first interest rate hike since 2018, which seems adequate considering the tremendous American 40-year highest inflation. Such circumstances disturb investors and force them to shift their portfolios to a safe haven. Gold, typically a low-risk asset, showed a steep rise reacting to a strong buy.
The prognosis seems rather pessimistic in the realm of inflation rates and economic welfare in general. The conflict between Russia and Ukraine escalates further. That would cause commodities and energy prices to grow for many countries around the globe.