The Federal Reserve came through with the second rate hike of this tightening cycle, bumping up the Fed Funds rate by 0.5%. It was the biggest interest rate boost by the Fed since 2000. But given the extent of the inflation fight, this hardly seems like a bold, aggressive move. In fact, it was a […]
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YouTube/5-4-2022
USAGOLD note: This press conference, in our view, is likely to figure largely in the thinking of investors around the world for some time to come. We offer it here so that you can determine for yourself without editorial embellishment where the Fed is headed and what it might portend for financial markets in the months ahead – including precious metals.
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Institute of International Monetary Research/Tim Congdon/April 2022
“Many observers expect the peak in annual US consumer inflation to come quite soon (say, with the publication of the May numbers in June) at a little less than 10%. The Ukraine-related oil and food price increases are now hitting hit the indices. Note, as is basic in the context, that the US producer price final-demand index increased 1.4% in March, to take the annual rate of increase up to 11.2%. However, three considerations suggest that the peak in US inflation is still some months away – and may even be recorded in 2023.”
USAGOLD note: Congdon is the widely respected, UK-based economist who advised the Margaret Thatcher government as one of the so-called economic “wise men.” In this essay (which for the most part is a technical treatise addressed to “fellow macroeconomics and monetary analysts), he takes to task those who say that inflation is the result of external influences like energy prices, shortages, supply problems, etc. “Supply shortages,” he says, “are a symptom of inflation, not a cause.” As a long-time advocate of the monetarist school, he sees money creation – the quantity of money and inflation of asset prices – as the root causes of goods and services inflation.
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CNBC/Yun Li/5-3-2022
“You can’t think of a worse environment than where we are right now for financial assets. Clearly you don’t want to own bonds and stocks.” – Paul Tudor Jones, Tudor Investment
USAGOLD note: Jones goes on to emphasize capital preservation as the most important goal in the present environment. He is a long-time advocate of gold ownership.
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