Goldman Sachs economists believe that in November the Fed will announce the start of tapering its bond purchases. They say the central bank will likely dial back purchases by $15 billion then and at meetings that follow. Goldman Sachs officials also believe that gold has the potential to move higher. However, they say, “for gold to move materially higher though, there has to be a general risk-off event which will trigger demand for defensive inflation hedges such as the return of inflation worries”
Reuters via Yahoo Finance
Goldman Sachs raises odds on U.S. Fed taper announcement in Nov
Goldman Sachs economists have raised the odds that the U.S. Federal Reserve will announce the start of tapering its bonds purchases in November, predicting the central bank will likely opt to dial back purchases by $15 billion then and at meetings that follow.
In a note, the investment bank said it had raised the odds that a formal taper announcement will come in November to 45% from a previous forecast of 25%, and lowered the December chance to 35% from 55%.
According to Goldman, a $15 billion per meeting total pace of tapering would likely be split between $10 billion of U.S. Treasuries and $5 billion of mortgage-backed securities.
“A November announcement coupled with a $15bn per meeting pace would mean that the FOMC would make the final taper at its September 2022 meeting,” the Goldman Sachs analysts said in a note dated Aug 18, referring to the Fed’s Federal Open Markets Committee.
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Kitco News/Jim Wyckoff
Goldman Sachs think gold could move higher from here
U.S. investment banking giant Goldman Sachs has said gold has the potential to move higher in their latest commodities note. The team said a weaker USD and emerging market demand recovery could be an important factor with the precious metal.
The research note added, “for gold to move materially higher though, there has to be a general risk-off event which will trigger demand for defensive inflation hedges such as the return of inflation worries”
Reiterating the original stance the bank said “see XAU/USD moderately higher amid a weaker USD and emerging market demand recovery.”
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Fox Business/Brittany De Lea
Retirement swelled during the pandemic, more than expected, study shows
Older Americans were more likely to retire during the coronavirus pandemic, which forced millions of workers out of the labor force during its peak.
At least 1.7 million more older workers than expected retired due to the pandemic as of the second quarter of 2021, according to a report released by the Schwartz Center for Economic Policy Analysis.
As noted by researchers, older workers faced more health risks and job losses than other demographics.
The increase in retirements stemmed from primarily people ages 65 and older – retirements among this age group rose 1.7 percentage points compared with 0.3 percentage points for workers ages 55 to 64.
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