Meeting minutes show that the Fed remains neutral and gold prices remain stable above $3,300
2025-07-10 10:42:33
Gold prices held firm above $3,300 an ounce as they found some support, while the Federal Reserve continued to tread cautiously on monetary policy even as a potential July rate cut gained some support.
Analysts said there were few surprises in the minutes of the Federal Reserve's June monetary policy meeting, as the central bank maintained its neutral stance.
"In considering the outlook for monetary policy, participants generally agreed that, given that economic growth and the labor market remained solid and that the current monetary policy stance was moderate or prudent, the Committee was prepared to wait for the outlook for inflation and economic activity to become clearer, " the minutes said.
“Several participants noted that if data evolved in line with their expectations, they would be open to considering lowering the target range for the policy rate as early as the next meeting,” the minutes said.
Despite the dovish stance of “several members,” markets do not expect the Fed to cut interest rates this month. According to the CME FedWatch tool, markets do not expect monetary policy easing before September.
Adam Button, senior currency strategist at Forexlive, said: "It's no mystery who these people are, it's Waller and Bowman. The news here is that no one else has joined them, and they are outnumbered by those who are not going to cut rates at all. This does not mean that the market is wrong to expect 63 basis points of rate cuts this year, because officials tend to be overly hawkish before bad news arrives. But we may have overestimated Waller and Bowman."
Jeffrey Roach, chief economist at LPL Financial, said he didn't see anything in the minutes that would change the Fed's current neutral stance on monetary policy.
"The economy continues to chug along despite headwinds, giving policymakers time to assess the expected impact of tariffs," he said. "Since last week's jobs data, markets are not expecting the FOMC to cut rates later this month. Next week's inflation data could show another acceleration, which would give the Fed more reason to keep rates elevated. We do not expect inflation data to improve until later this year. "
After the release of the meeting minutes, gold prices rebounded and fluctuated. Affected by concerns about the trade situation, gold prices have now rebounded to above 3,320.
At 10:41 Beijing time, spot gold was trading at $3,320.90 per ounce.
Analysts said there were few surprises in the minutes of the Federal Reserve's June monetary policy meeting, as the central bank maintained its neutral stance.
"In considering the outlook for monetary policy, participants generally agreed that, given that economic growth and the labor market remained solid and that the current monetary policy stance was moderate or prudent, the Committee was prepared to wait for the outlook for inflation and economic activity to become clearer, " the minutes said.
“Several participants noted that if data evolved in line with their expectations, they would be open to considering lowering the target range for the policy rate as early as the next meeting,” the minutes said.
Despite the dovish stance of “several members,” markets do not expect the Fed to cut interest rates this month. According to the CME FedWatch tool, markets do not expect monetary policy easing before September.
Adam Button, senior currency strategist at Forexlive, said: "It's no mystery who these people are, it's Waller and Bowman. The news here is that no one else has joined them, and they are outnumbered by those who are not going to cut rates at all. This does not mean that the market is wrong to expect 63 basis points of rate cuts this year, because officials tend to be overly hawkish before bad news arrives. But we may have overestimated Waller and Bowman."
Jeffrey Roach, chief economist at LPL Financial, said he didn't see anything in the minutes that would change the Fed's current neutral stance on monetary policy.
"The economy continues to chug along despite headwinds, giving policymakers time to assess the expected impact of tariffs," he said. "Since last week's jobs data, markets are not expecting the FOMC to cut rates later this month. Next week's inflation data could show another acceleration, which would give the Fed more reason to keep rates elevated. We do not expect inflation data to improve until later this year. "
After the release of the meeting minutes, gold prices rebounded and fluctuated. Affected by concerns about the trade situation, gold prices have now rebounded to above 3,320.
At 10:41 Beijing time, spot gold was trading at $3,320.90 per ounce.
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