Gold & Silver Plunge As Fed No Longer Willing To “Sustain The Expansion”, Trump Likely Furious

The Fed just cut interest rates for a third meeting in-a-row. Gold & silver are getting hammered, but Trump’s about to get livid…

The Fed’s October FOMC statement “hit the tape” at 2:00 p.m. EST.

The Fed has cut interest rates by 25 basis points.

Instead of a targeted range between 1.75% and 2.00%, we now have a targeted range between 1.50% and 1.75%.

Here’s the obligatory “selling” of gold & silver the minute the FOMC statement hit the tape:

Because not hitting gold & silver as you release the statement is like being invited to an all you can eat buffet, only to order a glass of water.

The Dollar Index immediately spiked on the dollar debasement news:

Which makes total sense if you understand just how rigged these markets are.

Here is the entire statement from the Fed’s website:

Information received since the Federal Open Market Committee met in September indicates that the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending has been rising at a strong pace, business fixed investment and exports remain weak. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 1-1/2 to 1-3/4 percent. This action supports the Committee’s view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective are the most likely outcomes, but uncertainties about this outlook remain. The Committee will continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate.

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 maximum employment objective and its symmetric 2 percent inflation objective. 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.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; James Bullard; Richard H. Clarida; Charles L. Evans; and Randal K. Quarles. Voting against this action were: Esther L. George and Eric S. Rosengren, who preferred at this meeting to maintain the target range at 1-3/4 percent to 2 percent.

Implementation Note issued October 30, 2019

Of course the Fed will say inflation is under 2.0%.

However, when they are dragged from their offices and through the streets by elderly Americans with nothing to lose, who are dying because they can only afford to eat or take their meds but not both, perhaps then will the Fed admit to the truth?

More interesting than the actual statement is the Redline, which tracks the changes in the statement:

Interestingly, the Fed is no longer openly saying it will do whatever it takes to keep the bubble inflated.

This is huge, and it’s surely going to enrage President Trump.

Watch Powell’s press conference embedded below, generally at 2:30 p.m. EST.

That is, if you can stomach it.

More than 30 minutes in, and the knee-jerk in gold & silver is to the downside:


Knee-jerks are often times not the actual direction of the eventual move.

Fundamentally, this third rate cut is bullish for gold & silver prices.

Although the cartel simply won’t skip an opportunity to smash.

I’m still looking for gold & silver to turn-around this week.

There’s still a whole Powell press conference today.

Plus, Trump is surely absolutely furious now.

Because of the Fed no longer “acting”.

Not “sustaining the expansion”.

That way, when it crashes.

They can “manage” it.

Like it’s expected.

Not long now.

The crash?

It comes.


Stack accordingly…

– Half Dollar


About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at Paul’s Twitter is @Paul_Eberhart.