The US Federal Reserve’s Federal Open Market Committee (FOMC) has maintained its ambiguous, open-ended outlook after its meeting this week. The FED has stated that employment will provide the main source of direction for its quantitative easing program unveiled last month.
What this means is that, while the unemployment rate in the US is going down, it has some ways to go before any substantive changes will be made to the monetary policy. How much will it have to go down? Again, more open-ended statements, the FED says it will have to improve “substantially” from its current 7.8%.
This spells continued unrest in the markets leading up to the November Presidential election as Romney has stated that Bernake will be out of the FED if he is elected.
Look for gold prices to continue to fluctuate leading up to the election and then take a decisive turn depending on who is elected. We’ll be watching closely and offering more updates in the days and weeks ahead.