Money Remains Near Its 14-Year Peak

Markets are almost certain of a 25 basis point reduction in Fed funds, currently set in the range of 4.25%-4.50%. Traders expect a cumulative easing of approximately 67 basis points by the end of the year. These expectations have been bolstered by indicators confirming a slowdown in the labor market and moderate inflation. U.S. President Donald Trump has intensified pressure on Jerome Powell, the Fed Chairman, calling for a more significant rate cut to support a weakened housing market. Elsewhere, central banks in Canada and China are expected to ease their monetary policies this week, while those in Japan and the United Kingdom are likely to remain stable. On the geopolitical front, trade negotiations between the United States and China in Spain have made progress, with Trump and Chinese President Xi Jinping scheduled to speak on Friday. Meanwhile, industrial demand related to solar energy, electric vehicles, and electronics continues to tighten the physical silver market, with supply constraints supporting prices.