Gold & Silver “Sell-Off” The Moment The FOMC Statement Hits The Tape, Fed Sticks To “Transitory” Inflation Narrative

Watch Fed Chair Jerome Powell’s press conference right here at 2:30 p.m. EST…

(by Half Dollar) Gold & silver haven’t been having the best of weeks.

Gold continues to churn around $1800 while silver has been walked back down below $25.

Regardless, the Fed has just concluded its most recent 2-day FOMC meeting, and at 2pm EST, the moment the Fed’s statement “hit the tape”, gold & silver were “sold”:

As per tradition, of course.

Additionally, recall that the last FOMC meeting ended in a hawkish surprise, and that hawkishness is one of the main narratives for the current weakness in gold & silver.

Here’s most of today’s Fed statement (bold added for emphasis and commentary):

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.

With progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen. The sectors most adversely affected by the pandemic have shown improvement but have not fully recovered. Inflation has risen, largely reflecting transitory factors. 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.

The path of the economy continues to depend on the course of the virus. Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With inflation having run 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. Last December, the Committee indicated that it would 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 its maximum employment and price stability goals. Since then, the economy has made progress toward these goals, and the Committee will continue to assess progress in coming meetings. These asset purchases help foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses.

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.

Not much has changed from the last FOMC meeting, but with the recent surge in the Zombie Apocalypse, Fed Chair Jerome Powell has cover to lean dovish if he so chooses.

He will be having a press conference at 2:30 p.m. EST: