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US Interest Rates And Golds: Macro US economy and the Fed Interest Rate

Written By Unknown on Thursday, March 17, 2016 | 10:58:00 AM

US macroeconomic developments today will we trace slowly with regard to part of economic growth and inflation part of the US macroeconomic.
From the economic growth of labor growth factor becomes the starting point of hacking a growth state. Connection here is that the pace of labor could affect all sectors is at the economic growth.
The development of the US labor sector is experiencing a trend improvement from late 2013 until now when the Fed's stimulus package ends so likely trend of the US workforce will continue to improve at a time when that will come. Improvements in this sector will certainly change the behavior of spending or consumer spending since the US experienced raising consumer income.

Read also US Interest Rates and Gold: A Confidence In Confusion 

The direction of consumer shopping behavior continues to improve making the other sectors will also change the trend towards more nice. Behavior consumer spending rose in the theory of macro economy will certainly make the sector sale of property or the index of housing, the index of retail sales or retail sales, banking activities and order order goods or durable goods orders increasingly have a positive trend, so if we see that the rate of economic growth in The US also leads to positive things.
With the potential economic growth rate is a good chance the velocity of money in the US will grow in size and made increasingly rising prices due to depletion of stocks in the business sector (business inventories and wholesale inventories).
The rate of economic growth that occurs is usually followed by the rate of inflation so that the task of the central bank is to resist such headway that macroeconomic run in accordance with the theory of economic balance. Potential interest rate hikes will be seen when there is something like this after holding the velocity of money or money supplay excessively inside the country.
Potential increase in US interest rates is being peered at the surface and komidity global financial markets with the opportunities that if this happens then inevitably it will have strengthened the dollar index, which means also that the gold price will be corrected fairly deep.
Well kept it is undesirable from the Fed itself as a strengthening interest rates there has been no final decision in time and place. And the strengthening of the dollar index will also affect the balance of payments deficit increase.

Expectations of the Fed that the strengthening of the dollar index occurs when the decision is final interest rate increase at the meetings of the FOMC meeting this year.

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