Gold has all the potential to go unprecedentedly high. But silver will be gold on
Site:
Precious metals news
In other words, the Fed would need to cool inflation off by swiftly raising interest rates. Higher borrowing costs would slow or even derail the economic recovery.
Inflation has been on the rise for the past year and in the last few months it has accelerated. In June 2021, inflation, measured by the Consumer Price Index (CPI), hit the highest level since 2008.
A panel of former top global economic policy makers on Wednesday warned that major trading disruptions in U.S. Treasuries are likely to increase unless reforms are made, adding to pressure on American regulators to fix structural issues that contributed to last year’s market meltdown. “Confidence in the U.S. Treasury market, and its ability to function...
Sen. Elizabeth Warren Shoots Down a Key Reason Investors Buy Bitcoin, Calls for Tighter RegulationJul 28, 2021 - 09:40:07 PDT
"The idea that they're somehow a protection or a hedge, I don't think that's going to be borne out over time," Sen. Elizabeth Warren told CNBC on Wednesday.
Centers for Disease Control and Prevention (CDC) Director Dr. Rochelle Walensky told reporters during a teleconference on Tuesday that her biggest concern is that the CCP virus may be “just a few mutations” away from being able to evade vaccines.
Raging mania house-price inflation.
People expecting to retire this year are facing debts around a fifth higher than those who finished work last year the research found.
President Joe Biden's latest leap into the Senate's up-and-down efforts to clinch a bipartisan $1 trillion infrastructure deal comes with even more at stake than his coveted plans for boosting road, rail and other public works projects.
Lawsuits seeking to preserve pandemic-era unemployment benefits are increasing as states across the country seek to halt the federal payments so residents will go back to work.
A Fed-Issued Digital Dollar Could Print Money — For the People: Sheila BairJul 28, 2021 - 07:41:55 PDT
More and more informed observers are asking why, after 13+ years of the Federal Reserve’s increasingly aggressive monetary interventions, the benefits remain so skewed toward Wall Street over Main Street. A digital dollar could level the playing field.
It’s everywhere. At the White House. In consumer data. On earnings calls: Anxiety that inflation is about to gut the economy. Two places it isn’t are the stock and bond markets, where investors have taken Jerome Powell’s “transitory” mantra to heart. Breakeven rates -- a gauge of bond market inflation expectations -- have barely budged in a month...
The reason why the aftermath of pandemics push up real wages is because of the shortage of labor.
Executives who run companies making everything from airplane parts to cars and steak burritos are at odds with economic policy makers on how durable the recent surge in U.S. inflation will be and see higher prices hitting margins and profits through the remainder of this year, if not longer.
M2 Money Supply is measured by the Federal Reserve to calculate the amount of Money in the financial system. The Fed defines M2 as: Seasonally adjusted M2 is constructed by summing savings deposits (before May 2020), small-denomination time deposits, and retail MMFs, each seasonally adjusted separately, and adding this result to seasonally adjusted M1.Historically, the term inflation was defined as an expansion of the money supply that generally led to higher prices. Therefore increases in M2 is the measure of inflation. Increases in M2
India ranks as the second-largest gold-consuming country in the world, second only behind China, but demand has languished for the last couple of years. The pandemic crushed demand, particularly for gold jewelry, but record-high gold prices in rupee terms and government policy put a drag on the gold market even before COVID-19. There were signs of a turnaround late last year and it continued through the first quarter of 2021. The most recent wave of COVID-19 stalled the gold Indian gold market's recovery, but it appears to be regaining steam.
Gold prices held steady near the key $1,800 per ounce level on Wednesday as investors held back from making large bets ahead of a U.S. Federal Reserve policy decision due later in the day. The Fed’s policy statement is due at 2:00 p.m. ET on Wednesday, followed by a news conference by Chairman Jerome Powell.
All-in-all it’s hard to point to a clear market catalyst from the upcoming meeting. However, with the curve so flat, the bias should be for some steepening. Beyond that, the hawkish tail seems fatter and longer than the dovish tail risk.
There's a growing chorus of experts who believe that the Fed may need to reverse course and start talking more aggressively about tamping down inflation. After all, consumer prices continue to rise. The stock market is near a record high. Wages are going up too.
For months, the markets have anticipated the Fed tightening monetary policy in order to take on rising inflation. At the June FOMC meeting, the central bank even hinted that it might start raising interest rates in 2023 instead of 2024, and the central bankers apparently talked about talking about tapering their quantitative easing bond-buying program. But with all of this talk, the loose monetary policy driving inflation continues unabated. Interest rates remain pegged at zero. The Fed balance sheet sets new records week after week. Where exactly is the exit door?
The Pentagon and Republican congressmen on Tuesday aired fresh concerns about China's build-up of its nuclear forces after a new report saying Beijing was building 110 more missile silos.