Gold & Silver Spike As Fed Signals No More Interest Rate Hikes For Rest Of 2019

Gold & silver spiked the moment the statement hit the tape. Here’s a post-FOMC update and a live-stream of Fed Head Powell’s press conference…

Here’s an embed of Powell’s press conference:

 

It’s kind of funny that chat is disabled during the live stream of the conference.

What a farce!

The minute the FOMC statement hit the tape:

Coverage from Bloomberg:

Federal Reserve officials scaled back their projected interest-rate increases this year to zero and said they would end the drawdown of the central bank’s bond holdings in September after holding policy steady on Wednesday.

 The median rate projection of Fed officials compared with two hikes in the December forecasts, which spooked investors at the time. In its statement following a two-day meeting in Washington, the Federal Open Market Committee repeated January language that it will be “patient” amid “global economic and financial developments and muted inflation pressures.”

The Fed’s signal that it will keep interest rates on hold for the full year reflects concerns that economic growth is slowing, lower energy prices are weighing on inflation and risks from abroad are dimming the outlook. The projections go further than the one-hike forecast analysts had expected in a Bloomberg survey.

In a separate statement Wednesday, the Fed said it would start slowing the shrinking of its balance sheet in May and halt the drawdown altogether at the end of September. After that, the Fed will likely hold the size of the portfolio “roughly constant for a time,” which will allow reserve balances to gradually decline.

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The projections showed 11 of 17 officials saw no hikes this year, while four expected one rate increase and two people projected two hikes. Policy makers expect to lift rates once in 2020, to 2.6 percent by the end of that year, and hold them steady in 2021.

That compares with a December projection for a 3.1 percent rate in 2020 and 2021, with borrowing costs converging to 2.75 percent in the longer run, according to the median path. That long-run estimate was unchanged in Wednesday’s forecasts.

The Fed formally adopted its 2 percent inflation goal in 2012, and price gains have mostly come in on the low side since then.

Policy makers slightly lowered their expectations for inflation relative to their last set of economic projections. After 1.8 percent headline inflation in 2019, they see price gains of 2 percent on both the main and core indexes for the next two years, eliminating the overshoot they had previously projected.

Officials see unemployment at 3.7 percent by year-end, higher than their previous estimate of 3.5 percent. At the same time, they lowered their long-run jobless rate projection to 4.3 percent, suggesting the labor market is running less hot than they previously thought.

Here’s the actual statement from the Fed:

“Symmetric 2 percent inflation objective” means that since inflation has been so low since 2012, even though anybody who can fog a mirror understands it has not been low, the Fed is willing to let inflation run higher than normal, you know, so it all balances out in the end.

The US dollar is not loving it:

Of course, President Trump is loving it, because we know Trump, most recently, is a “weak dollar man” again.

As expected, gold and silver were prepped before hand, with gold briefly “selling-off” below $1300.

The bottom line: The Fed is basically done hiking interest rates, but that may not be enough.

Because simply not hiking the Fed Funds Rate is not going to keep the markets elevated.

Granted, if I’m right about bringing max pain to the United States, it doesn’t matter.

Because the plan is to crash the stock market and collapse the US economy.

For now, however, the show must go on so the sheeple think it’s real.

MSM propagandists and Fed apologists will get their spotlight.

And the Fed will continue to be treated like rock stars.

They should, however, be treated like terrorists.

The don’t use bombs, cars, guns or knives.

They use the markets & the economy.

Which is surely much worse.

Since everybody feels it.

Financial terrorism.

aka Fed Policy.

Pure evil.

Oh yes.

It is.

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 PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

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