Jerome Powell Dismisses Gold Price Surge as Sign of Credibility Crisis

Federal Reserve Chair Jerome Powell has downplayed the implications of soaring gold prices, asserting these are not indicative of diminishing credibility for the Fed. He emphasized the Fed's focus on broader asset price movements rather than being overly concerned with specific market changes.

Federal Reserve Chair Jerome Powell addressed concerns about the implications of record-high gold prices on Wednesday, asserting that the Fed does not derive significant macroeconomic insights from such surges.

In a news conference, Powell emphasized that the increase in gold prices, spiking to $5,300 an ounce, is not an indication of the Fed losing credibility.

He reassured that inflation expectations remain anchored and emphasized the Fed's commitment to maintaining its credibility, regardless of fluctuations in asset prices.

(With inputs from agencies.)