Tag: federal reserve

Yes, the Fed Will Cover Biden’s $4 Trillion Deficit

Yes, the Fed Will Cover Biden’s $4 Trillion Deficit

Central bankers and their comrades in Washington DC changed course in 2020. The policy shifted from “print money and hand it to Wall Street” to “helicopter money” in the form of direct payments and loans to citizens. The fiscal stimulus, like the Fed’s monetary stimulus before it, provided a fix that addicted markets needed to stay high. The helicopter money represents another “temporary” measure that will almost certainly become permanent. Much like Quantitative Easing and Zero Interest Rate Policy, bureaucrats will have a very hard time stopping what they have started. Direct payments to Americans undermine free markets and the dollar. They represent the next major advance in the effort […]

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Fed Grilled about Its Unsound Currency, Digital Currency Schemes

Fed Grilled about Its Unsound Currency, Digital Currency Schemes

As financial markets gyrated this week, Federal Reserve chairman Jerome Powell touted the U.S. dollar as a form of “sound money.” More on that incredible take in a moment. But first, let’s review this week’s market action. Inflation fears helped drive another spike in long-term bond yields, and by Thursday that began to spook Wall Street. The Treasury market is now off to one of its roughest starts to a year on record. As a result, calls are mounting for the Fed to up its bond purchases. A steepening yield curve is helping to depress precious metals prices. Rising real interest rates tend to be negative for the gold market. […]

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Fed: “We’re Not Going to Take This Punchbowl Away”

Fed: “We’re Not Going to Take This Punchbowl Away”

Meanwhile, Are Central Banks Considering a Ban on Private Crypto Currencies? Precious metals markets are struggling against the headwind of a rising U.S. dollar this week. The dollar index broke out to a four-month high on Thursday. Neither a much-awaited fall in bond yields nor dovish remarks from Federal Reserve officials dissuaded currency traders from buying Greenbacks and selling other fiat currencies. Commodities and precious metals markets also saw some selling. Despite choppy trading in metals markets so far in 2021, intense demand for coins, bars, and rounds continues to strain supply chains in the bullion market. Some mints and dealers are simply unable to deliver product to their customers […]

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Nervous Fed to Give Precious Metals Markets a Boost

Nervous Fed to Give Precious Metals Markets a Boost

The Fed’s Open Markets Committee met last week and left policy unchanged – at least for the moment. No one expected central banking officials to make rate adjustments last week with equity prices rubbing up against all-time highs and the economic recovery narrative still dominant. Central bankers are likely getting nervous, however. Treasury yields are surging, and it is only a matter of time before stimulus addicted markets throw another tantrum. In fact, the S&P 500 index fell after Wednesday’s announcement and each of the following two days. Rising yields are also creating headwinds for precious metals, at least in the futures markets. Prices are having trouble getting anything going […]

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Silver Setting Up for a BIG Move Following Fed

Silver Setting Up for a BIG Move Following Fed

Precious metals markets traded into an important technical juncture ahead of Wednesday’s Federal Reserve policy announcement. Bank of America analysts stated that this week’s meeting is “one of the most critical events for the Fed in some time.” The Fed faces mounting pressure to intervene in the bond market as yields continue to rise. It will likely reiterate its commitment to keeping its benchmark rate near zero and vow to continue buying at least $120 billion in bonds per month. Critics of Fed chairman Jerome Powell’s easy-money stance are warning that monetary and fiscal policy are too loose. The federal government’s recent $1.9 trillion spending package, combined with ongoing “emergency” […]

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Media Celebrates after Trump’s Pro-Gold Fed Nominee Gets Blocked

| November 19, 2020 | Articles: Insights
Media Celebrates after Trump’s Pro-Gold Fed Nominee Gets Blocked

It was only after he entered politics that President Donald Trump began to fully grasp the bias, dishonesty, and fakeness that runs throughout the so-called mainstream media. But gold bugs and sound money advocates have long known to distrust the reporting of establishment news sources. Journalists’ anti-gold and anti-Trump biases converged this week as the Senate took up President Trump’s nomination of Judy Shelton to the Federal Reserve Board. Shelton, a fierce Fed critic and past supporter of a gold standard, drew intense opposition from Senate Democrats. She also faced opposition from Republicans Lamar Alexander, Susan Collins, and Mitt Romney. A path to her confirmation appeared to exist earlier this […]

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Is Fed Chairman Powell the Real Election Winner?

Is Fed Chairman Powell the Real Election Winner?

As President Donald Trump continues to insist that he will be the winner of the election after all the legitimate votes are counted and the illegitimate ones thrown out, at least one publication has declared a different winner. Not Joe Biden, but Federal Reserve chairman Jerome Powell. The Wall Street periodical Barron’s argued Powell has become a more important figure for markets than whoever occupies the White House. Even as the presidential election outcome has been beset by uncertainty all week, Wall Street didn’t panic.  Quite the opposite.  Stocks surged on expectations for divided government and gridlock – and four more years of Fed stimulus. The more divided and dysfunctional […]

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Get Ready for a Post-Election ‘Fed Wave’ of Inflation

| November 5, 2020 | Category: Economy
Get Ready for a Post-Election ‘Fed Wave’ of Inflation

As accusations of voting irregularities mount, President Donald Trump’s legal team is descending on Pennsylvania and Georgia as well as multiple battleground states that have been called by media outlets for Joe Biden. It will be an uphill battle for Trump to get to 270 electoral votes. As of this writing on Thursday morning, the final outcome of the presidential election remains uncertain. One thing that is now certain: Voters denied Democrats the “blue wave” many pollsters and pundits had been forecasting. Instead of a Biden landslide, a takeover of the Senate, and an expanded House majority, Democrats will instead have to share power with Republicans. The promise of divided […]

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Beware of These Faulty “Inflation Protected” Investments

| September 21, 2020 | Articles: Experts Talk
Beware of These Faulty “Inflation Protected” Investments

The Federal Reserve last week reiterated its commitment to an unprecedented inflation-raising campaign. Specifically, the Fed aims to push the inflation rate above 2% for an extended period. The risk for investors is that central bankers succeed in their mission to depreciate the currency more rapidly – perhaps even more rapidly than intended or acknowledged in the official (understated) inflation data. Inflation is a corrosive force that eats away at the real value of savings and investments. It is perhaps the biggest threat looming on the horizon for millions of retirees who have been steered into assets marketed as “conservative” – such as dollar-denominated money market accounts, bonds, and fixed […]

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Gold & Silver Shine as Fed Targets Bondholders for Capital Losses

Gold & Silver Shine as Fed Targets Bondholders for Capital Losses

As the tech-heavy stock market indexes sold off on Thursday, many investors were forced to re-think their positions. For the past few months, mega cap technology companies like Apple, Amazon, and Tesla have led the market higher. Yesterday they led the market lower. Now the question is: Where can investors look for leadership going forward? As would be expected during big down days for equities, gold held up relatively better. For the week, though, gold, silver, and platinum prices are all down. Palladium has certainly shown leadership within the metals space in recent years. But despite this week’s gains, palladium prices still sit below their highs from February. And despite […]

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Fed Chairman Powell Is Vowing to Wreck the Currency

Fed Chairman Powell Is Vowing to Wreck the Currency

As the Federal Reserve embarks on a new campaign to raise inflation rates, markets may be in for a change in character. On Wednesday, Fed Chairman Jerome Powell announced that the central bank would be targeting an inflation “average” of 2%. By the Fed’s measures, inflation has been running below 2% in recent years. So, getting to a 2% average in the years ahead will require above 2% inflation for a significant period. Here’s Powell attempting to explain himself from central bankers’ virtual Jackson Hole conference: Jerome Powell: Our statement emphasizes that our actions to achieve both sides of our dual mandate will be most effective if longer term inflation […]

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“Government Sachs” Is Worried About the Federal Reserve Note

“Government Sachs” Is Worried About the Federal Reserve Note

As July comes to a close, gold is up better than 9% for the month and has advanced nearly 30% for the year. Gold’s record-setting rise has been driven by Federal Reserve stimulus, dollar weakness, and strong safe-haven investment demand. Even the Wall Street-centric financial media is taking note: Financial News Anchor #1: Gold is shining once again, this morning. The spot price is touching all-time highs, as the dollar index sits around a two-year low. Financial News Anchor #2: Those gold prices have hit an all-time high. The spot price of gold reaching a record. Gold traditionally surges in times of turmoil. In this case, the economic impact of […]

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Fed Chairman: “We’re Not Even Thinking about Thinking About Raising Rates”

Fed Chairman: “We’re Not Even Thinking about Thinking About Raising Rates”

Market volatility has suddenly spiked in recent days came after the Federal Reserve vowed last Wednesday to keep its benchmark rate near zero through 2022. That’s an unusually long period for the Fed to be projecting rate policy. It reflects the fact that it will take many months and perhaps years for the tens of millions of jobs that were recently lost to return. During his press conference, Chairman Powell stumbled and stammered his way into stating that he would be happy to let inflation continue to rise until the economy approaches full employment. Jerome Powell: We’d be looking to get inflation back up and we’d be prepared to tolerate, uh, […]

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What’s Next, Trillion-Dollar Coins?

What’s Next, Trillion-Dollar Coins?

The massive set of stimulus measures rolled out last month by the Treasury Department and Federal Reserve has left many Americans wanting more… and politicians scheming for new ways to dole out additional trillions in cash. Most taxpayers have already received their $1,200 “stimulus” payments. However, that one-time payment will do little to repair the long-term financial health of the 26 million (and rising) who are newly unemployed. And it surely won’t bail out all the small business owners who were callously deemed “non-essential” and forced to shut down during this pandemic. A national WalletHub survey found that 84% of Americans want another stimulus check. The idea of getting free money is […]

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