Gold Extends Drop as Traders Weigh Powell’s Remarks on Rates
- Powell says history warns against prematurely loosening policy
- Size of September hike hinges on the data, Fed chair says
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Gold extended declines after Federal Reserve Chair Jerome Powell warned against any idea that the US central bank would start loosening monetary policy soon.
Powell signaled the Fed will likely keep raising interest rates and leave them elevated for a while to contain high inflation. “Restoring price stability will likely require maintaining a restrictive policy stance for some time,” he said Friday in remarks prepared for the Kansas City Fed’s annual policy forum in Jackson Hole, Wyoming. “The historical record cautions strongly against prematurely loosening policy.”