Fed Resurrects ‘Transitory’ Inflation View Despite Previous Missteps

Gold held near $4,080 Monday as December Fed rate cut expectations surged, but a strong dollar and divided Fed officials kept gains modest. Treasury Secretary Bessent claimed tariffs don’t drive inflation—contradicting CPI data showing a jump from 2.3% to 3.0% since April. UBS sees silver’s pullback as a buying opportunity with a $55 target by mid-2026, while a new Senate bill could bring the first credible audit of US gold reserves since 1953.

Gold investors face whiplash as conflicting signals roil precious metals markets. While New York Fed President Williams opened the door to December rate cuts, stronger-than-expected jobs data has traders second-guessing the Fed’s next move. Meanwhile, gold demand is cooling across Asia amid price volatility, job openings continue their post-ChatGPT slide, and Bitcoin heads for its worst month since the 2022 crypto collapse. Today’s Daily News Nuggets breaks down what’s moving markets—and what it means for your portfolio.

The Fed’s December decision just became a coin flip. September jobs beat expectations with 119,000 positions added, but traders slashed rate cut odds to 50% after Cleveland Fed President Beth Hammack warned that easing now could “prolong elevated inflation.” Her concerns mirror Main Street, where 70% of small businesses cite inflation as their top worry. Gold dropped below $4,070 as the dollar strengthened and rate cut hopes faded.