Fed chair Jay Powell is scheduled to give a press conference Wednesday after announcing that the central bank will hold rates steady as expected.
Powell’s comments and the language in the statement on future hikes will be what markets are looking at for direction.
We all have seen that the Fed has looked under every rock in the economy to find inflation and has come up empty. It is still trending below the 2% threshold that the Fed uses to assess its policies.
Yes Powell & Co. prick the asset bubble know as the stock market to curtail that inflationary aspect by jawboning future rate hikes much to President Trump’s ire.
When talking about the Fed it was very interesting that President Trump retweeted Tuesday a Laura Ingraham post (below).
The post links the US economy to the “Gold Standard”. The president replies, “So true and not even close.”
Trump hinted during the presidential campaign he would like to go back to a gold standard for the dollar, which would send gold prices soaring in order to sustain that move.
However, gold prices over the last 10 days have risen close to $30 an ounce and broken through the long-held sub-$1,300 mark.
We also have this drop from Dec.12, 2018 No. 2619 answering a query if we have the gold:
Gold shall destroy FED.
So we have multiple mentions of the Fed and gold from various sources. Might it be wise to pick up some of the “ancient relic” as so many modern pundits call gold?
Not advising either way, but gold appears to be having a moment. On Nov. 13, 2018 gold was trading at $1,213 an ounce. Today it is $1,318 an ounce.