Federal Reserve Raises by .25% - Gold and Silver Charge Higher!
As UBS pointed out, "For the first time since the US Fed's independence, the rate setting committee will be presided over by someone who is not an economist - but a lawyer. In 1923, the German Reichsbank was presided over by someone who was not an economist - but a lawyer" So we have a layer in charge of the dollar supply...
The new head of the Federal Reserve, Jerome Powell isn't wasting any time getting things going. The headlines are noteably the following:
Fed estimates show an even steeper path for rate increases in 2019-20 (This won't be good for Stocks)
Fed median 2018 GDP growth est. rises to 2.7% vs the 2.5% Dec. est.
Fed sees U.S. unemployment at 3.8% in 4q 2018 vs the 3.9% Dec. est.
Fed median 2018 est. for Core PCE inflation unchanged at 1.9% vs the 1.9% Dec. est
Stocks and Gold Rallied on the news
No matter how you slice this, higher interest rates will not be good for stocks or the economic growth picture. Higher mortgage lending rates are already having an impact in my area. If rates ever go back to their historical average, its game over for the dollar.
I am Lord @matthewwarn and I have Stackitis...but there are worse problems to have in life.
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The increase of gold and silver shown by you continues as we speak. Oil is also up a lot. But the USD is down versus the EUR. I have bets on ofshore companies so oil up is good but USD down is bad.
When oil dipped below $30 I made a small investment into an oil related ETF and its done well. Long term, I think commodities in general are going to outperform the next 10 years. Its where my money is at. People finally figured out this was bad for stocks though and they sold off into the close. The fed and sovereign wealth funds will be in the market tomorrow though buying up stocks and pumping the market.
Es increíble como esto cada ves mas sube, el oro la plata y un poco el petroleo, cada día tienen un valor por encima