The Fed is determined to raise interest rates further to tame inflation - gold and stocks fall

Several reports detailed that Fed officials are determined to tighten monetary policy and raise the federal funds rate until inflation eases in America. Chicago Fed President Charles Evans explained on Tuesday that the central bank is likely to continue raising rates more than usual until inflation is corrected.

The Fed is determined to continue tightening policy

The Federal Reserve is in a difficult position as inflation in America is at its highest level since the 1980s. On Tuesday message citing three members of the U.S. central bank suggests that Fed policymakers remain convinced that more rate hikes are needed to tame the nation's rising inflation.

San Francisco Fed President Mary Daly during interview on Linkedin she explained that "we are still committed and completely united" in reducing inflation. She said the central bank still had a "long way to go".

"My modal outlook, or the outlook that I think is most likely, is actually that we will raise interest rates and then hold them there for a while at whatever level we think is appropriate,"

Cleveland Fed President Loretta Mester's view was similar, she said sheet The Washington Post (WP):

“We have more work to do because we haven't seen such a turnaround in inflation. I don't believe we're in a recession - certainly activity has slowed, and you're right, the GDP report showed negative growth for two quarters. in a row, but you really have to look at the composition of that growth to see which parts of the economy are slowing down.”

Chicago Fed President Charles Evans also shared his opinion. Evans a he explained, that the Fed will likely continue to raise interest rates heavily until inflation declines.

Cryptocurrencies, stocks and gold markets fell on Tuesday afternoon following statements from Fed members. The US dollar, on the other hand, strengthened against the Japanese yen and other major fiat currencies after a brief decline.

Gold also fell this month, as one ounce of pure gold cost $1,810 on July 1, and gold is trading at $1,765 an ounce today.

Analysts say the recent decline in gold is due to the strong US dollar because charts of the DXY index show that the dollar remains strong. "A strong dollar is also weighing on gold as the dollar's slide over the past few weeks appears to have ended."

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