Friday Four Play:
The “Never Break the Chain” Edition
Powell rings like a bell through the night, and wouldn't you love to love him?
Took to the sky without a rate hike, when will we get another?
All your life you've never seen a market taken by the wind. Would you stay if he promised you low rates? Will you ever win?
All right, in typical Friday fashion, it’s time to talk up the Fed … and Fleetwood Mac, I guess.
At yesterday’s meeting in Jackson Hole (Keep it PG, Joe…), Fed Chairman Jerome Powell decided that raising rates isn’t the right thing to do. How can he change things that he feels?
So, did he go his own way?
Kind of. The short story: Jerome and co. decided to not raise rates, with the central bank staying hands-off to let inflation run a little higher.
It’s a landslide moment, really. Powell’s been afraid of changin', ‘cause we’ve built our recovery around unlimited stimulus. The move isn’t exactly unexpected, however — I predicted as much on Wednesday.
Still, the market rallied on the news and dreams of prolonged low-interest-rate tomfoolery.
In the meantime, the Fed wants to focus on that whole “unemployment” thing. You know, the same unemployment and uncertainty that Wall Street’s told itself sweet little lies to forget about.
“The announcement of a move towards an asymmetric unemployment approach is very important and a welcome development,” said Oxford Economics’ Chief U.S. Economist Greg Daco. He continued: “The Fed will be in no hurry to raise rates. If and when the unemployment rate falls, the Fed will strive to ensure that the benefits from looser policy are as inclusive as possible.”
No hurry to raise rates? Ooh, don’t you ever look back…
The move (or lack of a move) to stoke inflation comes even though the Fed “…realizes that higher prices for essential goods such as food, gas and the cost of rent or a mortgage contribute to ‘the burdens faced by many families, especially those struggling with lost jobs and incomes.’”
Like I told you on Wednesday: This is why it pays to channel your inner pirate and hunt down golden booty. Rising inflation is bullish for gold. And it’s no coincidence that gold spiked yesterday and continued to rally today.
And if you don't love gold now, you’ll never love gold again. I can still hear you saying, you would never bank the gains (never bank the gains).
But this week’s gold rally ain’t the only gold that’s in them hills. A rare event is unfolding in the gold markets that only happens once every 20 to 30 years… One super quick presentation reveals what this rare event is, as well as exactly how to take advantage of it for potentially life-changing gains.
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And now for something completely different, it’s time for your Friday Four Play.
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