Gold has all the potential to go unprecedentedly high. But silver will be gold on
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The Fed is talking taper. But it seems to be having a hard time actually tapering. The central bank added another $100 billion to its balance sheet in January.
It looks like two years of “transitory" preaching has un-anchored the religious belief that The Fed has everything under control. Get back to work Mr.Powell
Fed's "Favorite" Inflation Indicator Highest In 38 Years, Personal Spending Drops Most Since FebJan 28, 2022 - 07:43:01 PST
Analysts expected a mixed picture from income and spending data in December (with spending expected to drop and incomes rise - an odd pairing during the Christmas month) and they were right with incomes rising 0.3% MoM (slightly less than expected) but spending tumbling 0.6% MoM (meeting expectations).
Employers spent 4% more on compensation last year, an increase not seen since 2001, as they competed for workers in a tight labor market.
The bottom line is that investors who are well positioned in hard assets shouldn’t fear the Fed. Those who cling exclusively to dollar-denominated financial assets, though, should be very afraid.
Jan 28, 2022 - 07:28:05 PST
Global gold demand rose 10 per cent in 2021 to 4,021 tonnes, recouping much of the coronavirus-induced losses sustained in 2020. The growth was driven by a surge in jewelry purchases and central banks, which shored up their bullion reserves, according to the World Gold Council.
“Starting 2022, you will see demand setting up a new normal toward 800-850 tons,” compared with an average of 667 tons in the five years through 2020, said P.R.
The Federal Reserve held its first FOMC meeting of 2022. The central bank didn't do anything, but the tone coming out of the meeting was widely perceived as even more "hawkish." Everybody is convinced the Fed really means it now. The inflation fight is on. Is it though? Host Mike Maharrey talks about the messaging and perceptions coming out of this meeting and calls it a big flim-flam.
Gold was set for its worst week since late November, with its price falling to a six-week low on Friday, as the dollar rallied on an expected U.S. Federal Reserve rate hike in March.
Inflation hasn't hurt Apple's business, which reported rising gross margins in the December quarter, and Apple hasn't raised prices in response to inflation in the U.S.
Jan 28, 2022 - 05:45:22 PST
Strong demand and limited supply led to a historic jump in the value of the U.S. housing stock, which surged to $43.4 trillion last year.
Persistently high inflation will haunt the world economy this year, according to a Reuters poll of economists who trimmed their growth outlook on worries of slowing demand and the risk of interest rates rising faster.
IMF Warns Crypto Rout Could Lead to Systemic Risk, Backs Fed Digital CoinJan 28, 2022 - 05:36:06 PST
Increasing correlations between crypto and stocks may create risks to the financial system, an official told Yahoo Finance.
The head of the IMF's market oversight team said Thursday he wouldn't be surprised by further selloff in the stock markets at some point this year.
The Bank of Japan should keep its inflation-targeting stimulus rolling and consider shortening the maturity of its yield target to make its easing framework more sustainable, the International Monetary Fund said Friday, in comments that contrast with global moves to tighten policy.
The European Central Bank is still more than one and a half years away from raising interest rates, according to economists polled by Bloomberg.
The U.S. Federal Reserve clearly telegraphed a March interest rate hike after its meeting this week but the pace of what follows may remain clouded as officials wait to see how inflation, the coronavirus pandemic, and the economy overall react in coming months.
The euro-area economy kicked off 2022 on a weak footing, with pandemic restrictions taking a toll on confidence and growing fears that Germany may be on the brink of a recession for the second time since the crisis began.
Goldman President Complains Overly "Political" Fed "Does Not Have The Will" To Stop InflationJan 28, 2022 - 05:06:55 PST
...the senior Goldman banker complained that the Fed’s political “independence" has been hurt, which in turn has weakened its credibility with markets. For a preview of how this could play out in the long term, just take a look at how successful Turkey's central bank has been at enforcing price stability.