The Federal Reserve trimmed the federal funds rate by a quarter-point to 2% today, as high food and energy prices, the credit crunch, a reeling housing market and the prospect of a recession provided reason for the Fed to give the economy another boost.
With the move, the Fed has cut interest rates
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Skeptics says products often fare worse than simpler alternatives.
Following a 13 percent advance this year, the price of the yellow metal wavered as traders weigh the odds of harmful rate hikes.
Data show amped-up net buying in sector through long positions and short-covering even amid a slide in S&P 500 IT index.
The S&P 500 is poised to extend gains on tech earnings while short-term Treasury yields fell following brisk rise in Fed’s preferred inflation gauge.
Cantor Fitzgerald’s chief executive predicts the central bank will “show off a little bit” just before voters head to the polls.
