Until today, it was absolutely unclear whether the current vaccine would protect individuals against the new variant of Covid-19 “Omicron”.
In interviews with the Financial Times and CNBC, Moderna CEO Stéphane Bancel predicted that current vaccines would likely be “less effective against the emerging variant Omicron.” Speaking to the Financial Times, he said: “There are no people, I think, where [the effectiveness] it’s the same level … we had with [the] Delta [variant]. »
According to CNBC, “Moderna CEO Stéphane Bancel said on Monday that it would take months to develop and ship a vaccine that specifically targets the omicron variant of the virus that causes Covid-19.” He told CBS News, “We don’t know what we don’t know.” These statements were one of the main underlying factors that took gold to its highest today above $ 1,811.
However, market sentiment quickly shifted from bullish to bearish as President Powell spoke in the Senate. His statements indicated a much more hawkish tone than previous testimony or press conferences. Reading between the lines, his testimony today confirmed that the Federal Reserve got it wrong about the inflationary pressures that caused the President to reverse his old statements.
Specifically, he addressed the term “transient” in relation to current inflationary pressures by saying that “transient means different things to different people”. According to Reuters, “US Federal Reserve Chairman Jerome Powell said on Tuesday that the word ‘transient’ was no longer the most precise term to describe the nature of the current high inflation rate. It is probably a good time to withdraw that word. “
The Federal Reserve got it wrong in terms of projections of inflationary pressures, and rather than admit that President Powell backtracked on old statements by members of the Federal Reserve, including himself as he tried to ‘soften the blow that will result from the statement released at the next FOMC meeting. on December 15, which will most likely indicate that the Fed will accelerate the timeline for reducing its asset purchases. So that they can raise interest rates earlier to combat rising inflationary pressures.
At 5:20 p.m. EST, based on gold futures, the most active February 2022 contract is down nine dollars and pegged at $ 1,776.20, after recovering from today’s low. hui of $ 1,771.20. President Powell’s statements in the Senate rocked the financial markets across the board, including a 652 point (-1.88%) drop in the Dow Jones, with all other major indices trading down -1.55% (NASDAQ composite) and -1.90 in the S&P 500.
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Wishing you, as always, good exchanges and good health,
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