The Fed had been raising its key interest rate by a quarter percentage point. However, it has changed tactics, most likely because it is preparing for a pause in the rate hikes.

Of course, another quarter percentage point will still be seen in May, and the Fed has confirmed that they will continue to keep the final rate at a high level throughout 2023. But a pause is inevitable and, most importantly, additional tightening measures are being introduced. This news resulted in a rise in precious metal prices and a fall in dollar.

According to the CME FedWatch tool, there is a 38.8% chance that the Fed will pause its rate hike in May, and there is a 61.2% chance that the Fed will hold its last rate hike at a quarter percentage point.