It’s a Tom and Jerry market. Here’s how it works… The Fed thinks the economy is recovering and makes noises about raising rates at some time in the future.
Typically, central banks use monetary policy (interest rates) to stimulate or stymie demand. It’s all about finding the right balance of growth and inflation — not too hot, and not too cold. Or as the phrase goes: the ‘Goldilocks economy’.
Best case, more of the same. Worst case…now that’s the BIG problem we’ve been building to. I think deflation is going to tighten its grip on the global economy.
Perhaps Sanders and Trump are right; maybe it’s time to take a fresh look at the power elite…and how they are running the country.
When the interest rate hike rumours grow, which will inevitably change the sentiment, gold will reverse its trend.
Why did Obama order this high profile meeting with the Chair of the US Federal Reserve — Janet Yellen? There are a few factors to consider and they are to do with the upcoming US election…
F. Scott Fitzgerald, author of The Great Gatsby, famously said, ‘The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function’. My…
Oil jumped more than 5% while gold was up US$30 an ounce, or around 2.5%. Clearly, there is still a lot of bearish positioning in the commodity space.
The Federal Reserve lifted interest rates to <0.50% in December last year. And, for the second time this year, rates have remained unchanged.
The Fed’s independence is again threatened: not by war, but by secular stagnation.