Tag Archive: the fed

Markets May be Tied Too Close to the Fed

The Federal Reserve has signaled that it may be done cutting rates, for now at least. Of course, the central bank could change its mind, and quickly, if the economic data stream shows further deterioration or if a U.S./China trade deal appears to be a no-go. Thus far, the Fed appears to be trying to maintain its patience, and the central bank could also see good things ahead for the U.S. economy. The markets may be tied too close to the fed. Another matter could... Continue Reading

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Big Picture Is Bullish

The gold market is working hard today to recover some of yesterday’s declines. Oddly enough, the yellow metal is stronger even as stocks are also moving mostly sideways today. Although this may come as a significant surprise to many, it really shouldn’t. The gold market could very well move higher along with stocks in the weeks and months ahead. The U.S. Fed recently suggested that it would not look to hike rates again until there is a pickup in inflationary pressures. The central bank has... Continue Reading

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New Highs May be Seen

The gold market is slightly lower in early grade Monday, but remains firmly above the key $1400 level. The market may simply be taking a breather before it begins another leg higher. Overnight, fresh GDP data out of China showed the slowest growth in the country in 27 years. The market reaction has been muted thus far, however, as some key data points for June were more encouraging than expected. The significant slowdown in GDP is clearly a cause for concern, especially at a time... Continue Reading

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Three Reasons Another Recession is Inevitable

Some analysts in recent months have suggested that the U.S. could be headed for another recession. The ongoing U.S./China trade war, fading effects from tax cuts and government spending and an aging expansion are just a few of the reasons cited. Other analysts have suggested that recent economic weakness and market declines are normal and simply some bumps in the road. Whether the next recession hits this year, next or in the next few years, it will arrive. Here are three simple reasons that a... Continue Reading

Surprise, Surprise… The Fed Is Stuck

Wednesday afternoon brought the release of the latest Fed meeting minutes. The minutes detailed what some analysts already knew: The central bank is on hold for the rest of the year and will not raise rates further. The Central Bank Is on Hold for 2019 Numerous Issues Cited by the Fed The Fed cited numerous issues that weighed in its decision: A general unease over the U.S. and global economies, the ongoing trade war with China, a lack of inflation and a messy Brexit. Fed... Continue Reading

Does the Fed’s About Face Mean QE4 Is in the Cards?

Could quantitative easing be in our future? QE4 could be just around the corner… The notion of a global slowdown has been widely covered by the financial media in recent months. Weakness in key areas such as manufacturing has been seen in both China and the U.S. The Eurozone is seeing its own struggles as well, with Italy already in recession and Germany perhaps on its way. The slowing global economy has led the U.S. Fed to do a major about-face in recent weeks. It... Continue Reading

Can Gold and Rates Rise Together?

Last week, the release of minutes from the latest Federal Open Market Committee (FOMC) meeting showed there is growing support for another rate hike to take place in June. This seems to be quite contrary to recent assessments by many analysts, who have cited several reasons that any further hikes would likely wouldn’t be seen until December, if at all in 2016. Perhaps this was another example of investor complacency. According to the minutes: “Some participants were concerned that market participants may not have properly assessed... Continue Reading

WHY IS THE FED RELUCTANT TO RAISE RATES?

The Fed appears to have a problem on its hands, and markets are watching. The gold market, like many other asset classes, has been paying close attention to the ebb and flow of hawkish and dovish rhetoric from the central bank. Investors seem to be taking a “wait and see” attitude at this point, neither willing to truly commit but also not willing to stand idly by. Stocks have been going up for years now, while interest rates have remained artificially low. The gold market... Continue Reading

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Former Fed Chairman Alan Greenspan on Gold

Where will gold be in five years? “HIGHER.” How much Higher? “MEASURABLY!” Former Fed Chairman Alan Greenspan spoke Wednesday to the Council on Foreign Relations. He said QE ultimately fell short of its goals referring to the end of the bond-buying program, which aimed to lower unemployment and spur stronger economic growth. Mr. Greenspan’s comments to the Council came as Fed officials were meeting in Washington, D.C., and expected to announce within hours the end of bond purchases. Mr. Greenspan said the bond-buying program was... Continue Reading

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