Fed's Hawkish Stance Boosts Year-End Rate Hike Expectations to 38 Basis Points

[SMM Precious Metal Express] On the Middle East front, the US and Iranian presidents signed an electronic memorandum of understanding, with the official 14-point text largely matching media reports. A formal signing is set for Friday in Switzerland. Trump warned of resuming bombing if unsatisfied with the MOU and discussed strikes on Hezbollah with Syrian leadership. Southern Lebanon came under multiple Israeli attacks, with Israel's finance minister stating no withdrawal on Friday or thereafter.

[SMM Precious Metal Express] The Federal Reserve held interest rates steady for the fourth consecutive meeting in June, with a significantly shortened statement removing language hinting at further rate cuts. The dot plot showed nine officials expect a rate hike this year, while new Chair Warsh did not submit a dot plot and declined to provide forward guidance, announcing the formation of working groups to reform the Fed and adjust its communication approach, including post-meeting press conferences and the dot plot. He also stated there is no reason to revisit the 2% inflation target before it is achieved.