Cleveland Fed's Hammack Supports Policy Restrictiveness as Gold Rises Amid Falling Treasury Yields

Cleveland Federal Reserve President Beth Hammack emphasized on Thursday that monetary policy needs to remain restrictive, despite the US job market being broadly balanced, according to FX Street. Her comments suggest continued caution from the Fed in managing inflation risks.

Meanwhile, gold prices (XAU/USD) edged up by 0.25% as declining US Treasury yields helped offset the impact of the Fed's hawkish tone. This dynamic highlights investor preference for safe-haven assets amid mixed signals from economic data and central bank policy.

Additionally, FX Street reported that the US trade deficit widened significantly, marking the largest increase since the period following former President Donald Trump's so-called 'Liberation Day.' For Japanese investors, these developments underline the ongoing influence of US monetary policy and economic trends on global markets, including FX and commodities.