Gold & silver smashed lower after today’s FOMC meeting statement hit the tape. Here’s an update…
Gold & silver had been under pressure all day leading into the FOMC announcement:
At 2:00 p.m. EST, the knee jerk reaction was a spike in gold & silver prices (silver reached it’s high of the last 24 hours when the statement “hit the tape”) and a drop in the dollar:
SD readers know, however, not to count on the knee-jerk being the direction of price action. That isn’t something that plays out until several minutes later.
Basically, the cartel needs to see how much paper gold & silver is whizzing around the COMEX, sitting back for a moment and taking it all in, before deciding to pounce.
You could think of it as a cougar laying on a tree branch, observing its prey, but ready for the moment to pounce:
Sure enough, the ideal time came and the cartel has decided to pounce after the knee-jerk reaction settled down:
We’ll have to see if gold can regain $1340 as support, and it would be nice for silver to get back above $17.20 and stay there as support.
Today is Janet Yellen’s last FOMC meeting as Fed Chair.
Since she has been at the helm of our debt-based fiat currency regime her stated public goal has been to devalue the purchasing power of the dollar by 2% per year.
Since home prices, gas and food are “volatile” and not counted in the official “core” inflation numbers, Yellen has never been able reach her target, even though anybody who actually lives and pays for things in their day to day lives knows that inflation is well over 2%.
Nonetheless, Jerome Powell will be sworn in as the new Fed Chair next month and gets the honors of selling the VIX, buying S&P futures, and suppressing gold & silver prices while he can, in full cooperation with the Exchange Stabilization Fund (ESF).
Unless the global elite have plans to change course.
– Half Dollar
For anybody who has the stomach to read the Fedspeak, here’s the FOMC statement pasted below in its entirety:
Information received since the Federal Open Market Committee met in December indicates that the labor market has continued to strengthen and that economic activity has been rising at a solid rate. Gains in employment, household spending, and business fixed investment have been solid, and the unemployment rate has stayed low. On a 12-month basis, both overall inflation and inflation for items other than food and energy have continued to run below 2 percent. Market-based measures of inflation compensation have increased in recent months but remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with further gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market conditions will remain strong. Inflation on a 12‑month basis is expected to move up this year and to stabilize around the Committee’s 2 percent objective over the medium term. Near-term risks to the economic outlook appear roughly balanced, but the Committee is monitoring inflation developments closely.
In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1-1/4 to 1‑1/2 percent. The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation.
In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal. The Committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.
Voting for the FOMC monetary policy action were Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Thomas I. Barkin; Raphael W. Bostic; Lael Brainard; Loretta J. Mester; Jerome H. Powell; Randal K. Quarles; and John C. Williams.