Tag Archive: inflation expectations

No Easy Way Out

Now that new Fed Chairman Jerome Powell has taken the reigns, investors seem to be getting a sense that the central bank is not likely to deviate from its previous course under Janet Yellen. The central bank is still sticking with three possible rate hikes for this year, and the possibility of a fourth or perhaps larger hike are also on the table. The central bank now finds itself in a very difficult, if not impossible, situation. It has to attempt to control accelerating inflation... Continue Reading

More Fed Minutes – Same Story

Wednesday’s release of the highly anticipated Fed meeting minutes were essentially a non-event. Although no action is expected from the central bank until, next month, some investors did seem to be a bit nervous as the new Fed Chairman, Jerome Powell, takes the reigns. The central bank did stick with some similar language, as it suggested that it would on a path of gradual rate hikes. Of particular note, the Fed did raise its inflation expectations and stated that core personal consumption expenditures would rise... Continue Reading

Is Gold Waiting on the Fed?

Price action in gold recently has seen some significant whipsaws. Given the numerous bullish issues that could serve as the backdrop for a sustained rally higher, many investors may be wondering what might be driving the current selling pressure and volatile price action. Could it be the Fed? The Trump administration has been moving closer to a decision on who the next Fed Chair may be. Although current Chairwoman Janet Yellen may still be in the running, rumor has it that President Trump is leaning... Continue Reading

Inflation Expectations Remain Subdued

This has been seen before and will likely be seen again. The Fed raised interest rates on Wednesday afternoon by 25 basis points in a move that was widely expected. The twist, however, may be in the differing outlook on inflation between the Fed and the markets. One need only look at the latest reading on the Consumer Price Index to see this. On Wednesday, the latest reading on CPI registered a figure of -.1%. Not only was the core reading a full tenth of... Continue Reading