Volatile action in the Gold market in the aftermath of the first U.S. interest rate cut from the Federal Reserve in 11 years.
Today, the Federal Reserve has cut rates (by 25bps) for the first time since Dec 2008 (and cut the IOER to 2.1% from 2.35%). Additionally, they announced the end of the normalization of the balance sheet two months ahead of schedule.
The reason given for the reversal in policy was an upbeat U.S. economy but trouble abroad.
“In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 2 to 2-1/4 percent”
There were two dissenting Fed committee members, Esther George and Eric Rosengren.