Fed Did Not Change Policy Interest
The Federal Reserve did not change its policy by drawing a bleak picture. However, leaving an open door to do more can worsen the weak and falling dollar. According to FXStreet analyst Yohay Elam, stocks that greatly benefit from Fed support may eventually collapse.
“Giving more dollars to the markets means it can lose more value. The unique position of the dollar as a world reserve currency means that cheap lending conditions can increase other currencies by sending money abroad. ”
“On the Gold, Fed’s commitment to do whatever it takes, even if it doesn’t contain negative interest rates, means opening more space. Besides very troubled markets, estimates of $ 2,300 or $ 3,000 for XAU / USD seem less strange. ”
“ The S&P 500 Index is at a level that has neither profit nor loss in 2020 (mostly supported by the Fed). ”