Powell on Track for Fed Rate Cut Despite Some Dissent

Gold prices have risen as expectations for a Federal Reserve rate cut increase, following a U.S. inflation indicator that aligned with market predictions, according to ANZ Research. This development suggests a growing sentiment among investors favoring gold as a safe-haven asset amidst economic uncertainty.

The bond market has reacted unusually to the Federal Reserve's recent interest-rate cuts, with Treasury yields rising despite the central bank's decision to lower rates, a phenomenon not observed since the 1990s. This divergence has sparked significant debate among traders and analysts on Wall Street.

Redfin has reported a significant shift in the housing market, indicating that American homebuyers are facing affordability challenges as the average 30-year fixed mortgage rate stands at 6.19%. This trend suggests a growing imbalance with more sellers than buyers, marking 2025 as a notably strong buyer's market.

Collin Martin, head of fixed income research at Charles Schwab, discussed the potential nomination of Kevin Hassett as the next Federal Reserve chair, succeeding Jerome Powell, whose term ends in May. This follows reports indicating Hassett's emergence as a leading candidate for the position, with President Trump expected to make a formal announcement soon.

Futures for silver have reached a new record high, buoyed by the Federal Reserve’s inflation metric remaining below 3% in September. This surge reflects a growing investor confidence in precious metals amid shifting economic indicators.

The Federal Reserve is expected to announce a cut in interest rates next week, following disappointing U.S. jobs data that has raised concerns about the labor market. This anticipated decision comes amidst ongoing speculation and discussions among Fed officials regarding the appropriate monetary policy response to current economic conditions.

The Federal Reserve's preferred inflation gauge indicated a moderate trend in September, remaining below 3%, with a month-over-month price increase that is not expected to hinder discussions of a potential interest rate cut at the upcoming central bank meeting.