Gold & Silver Knee Jerk Lower As Fed Concludes Its 2-Day December FOMC Meeting

The Fed just concluded its 2-Day December FOMC Meeting. Here are the details, the press conference, and more…

(by Half Dollar) On Monday, I made note of how certain the markets were with regards to the Fed’s interest rate policy.

It should therefore come as no surprise that the Fed has, yet again, decided to not stop its non-stop, 24/7 market intervention with the rigging of interest rates at the same level they have rigged them at since the Sunday Night Rate Cut Shocker back in March of this year.

Remember, the Fed can “cut” interest rates and engage in stimulative activities any time the Fed wants to cut rates, but when it comes to “hiking” interest rates, if we could even consider 0.25% a hike at all, or “tightening” monetary policy, well now, the Fed has to prepare market participants for that well in advance, don’t they?

But I digress.

Here’s the FOMC statement (bold added for emphasis and commentray):

The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.

The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world. Economic activity and employment have continued to recover but remain well below their levels at the beginning of the year. Weaker demand and earlier declines in oil prices have been holding down consumer price inflation. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.

Sure, there’s no inflation.

There never is.

But hey, the “credit” is totally just flowing to households, isn’t it?

Do you even leverage-up, bro?

Continuing:

The path of the economy will depend significantly on the course of the virus. The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.

Dang lie.

The “path of the economy” will not be determined by the course of the virus but rather will be rigged and intervened in non-stop by the Washington Wall Street Beast.

If you are sick of it, then Starve the Beast.

Continuing:

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With inflation running persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer-term inflation expectations remain well anchored at 2 percent. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved. The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. In addition, the Federal Reserve will continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month until substantial further progress has been made toward the Committee’s maximum employment and price stability goals. These asset purchases help foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses.

The Fed should be labeled a Domestic Terrorist Organization, but then again, our “elected” “leaders” and public “servants” sold out long ago, so, um, yeah.

They also partake in the terror as they force elderly American savers to choose between food, home heat and medicine, and said “leaders” and “servants” enslave future American taxpayers with unsustainable debt burdens.

Bottom line: If you’re trying to live an honest life, well, the joke’s really on you, sucker!

Continuing:

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

Of course they’ll adjust it, and adjust it, and adjust it.

That’s what the Fed and the US Government do: They DENY Freedom and Liberty, especially when it comes to the markets and the economy.

Dang shame.

Continuing:

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick Harker; Robert S. Kaplan; Neel Kashkari; Loretta J. Mester; and Randal K. Quarles.

Those would be the various Terrorist Leaders Fed Heads.

Here are gold & silver’s knee-jerk reaction the moment the statement “hit the tape” at 2:00 p.m. EST:

The Fed says inflation is too low, they’re prepared to let inflation run hot, the Fed is also spending at least $120 billion per month on junk from the Federal government, which the Fed calls “asset purchases”, and gold & silver sell-off the minute the statement hits the tape.

Funny.

Knee-jerk reactions are often not the direction of the actual move, however, and I think gold & silver will get turned around here and continue their climb higher, showing us once again that the knee-jerk reactions are nothing more than pre-programmed “sell” orders.

Fed Chair Powell gives his press conference at 2:30 p.m. EST (embedded below):

Watch it only if you can stomach it.

I for one no longer can.

Developing…