Fed’s Goolsbee in Fox Business interview welcomes latest inflation data, says more rate cuts may loom

Gold prices remained steady during the morning Asian session, buoyed by expectations of potential interest rate cuts from the Federal Reserve. This trend reflects a growing investor sentiment towards gold as a safe-haven asset amid economic uncertainties.

Recent CPI inflation data has caused significant volatility in stock markets, as investors had anticipated a more aggressive stance from the Federal Reserve regarding interest rates. The data suggests a more stable economic environment than previously feared, alleviating concerns about a potential economic stall.

The Bank of England has reduced its key interest rate from 4% to 3.75%, marking the lowest rate since February 2023. This decision aligns with a broader trend of stabilizing borrowing costs across Europe, while the European Central Bank has opted to maintain its current rates. The move is part of ongoing efforts to stimulate the UK economy amid rising living costs and reduced consumer spending.