Posted on 09/16/2020 6:12:00 PM PDT by Moonman62
The Federal Reserve kept its pledge to keep interest rates anchored near zero and promised to keep rates there until inflation rises consistently.
As the central bank concluded its two-day policy meeting Wednesday, it said short-term rates would remain targeted at 0%-0.25%. Officials also changed their economic forecasts to reflect a smaller decline in GDP and a lower unemployment rate in 2020.
Projections from individual members also indicated that rates could stay anchored near zero through 2023. All but four members indicated they see zero rates through then. This was the first time the committee forecast its outlook for 2023.
In addition, officials addressed a new policy regime in which the Fed will allow inflation to run somewhat above the 2% target rate before hiking rates to control inflation.
(Excerpt) Read more at cnbc.com ...
Gold. Standard. Now.
Good luck with that.
Seems like I heard a long time ago, “Don’t fight the Fed.” FYI
Wow back in 1957 I earned 4% interest on a grade school pass book savings account through the local bank.
Great advice. Their influence is considerable such as when the stock market took off back in March when they got involved. Before that, they were trying to kill the economy with interest rates above what the market would charge (remember Trump taking the Fed to task frequently on Twitter?). The China virus made the Fed end their war on the economy and go into stimulus mode.
Trump was right again on the high Fed rate.
Seems like a good time to start a 6 or 7 figure business project with the SBA loan.
12% a year? You could borrow against your home and make millions with that much inflation. You must be loaded.
What's your secret?
Trump is firmly in control of the Fed as I have stated we nauseum. After Trump is reelected it will be absorbed by the Treasury Department and our new dollar will be backed by gold. The Fed’s days are numbered.
Why?
So the dollar cannot be devalued. Why do you think we went off the gold standard in the first place?
Because of its pleasing appearance and density, or because it’s the standard of value for grumpy people.
I wish I thought of that reply.
What happens when there isn’t enough gold to exchange for dollars?
Well for one thing the price of gold will not fluctuate anymore. They will set a price for gold probably based on the cost of living at the time and that will be the price of gold going forward. Maybe $5000 per oz.
What happens to the dollar when China, for instance, redeems $1 trillion? Just how much gold do you think we've got?
Currently, $5000 buys about 2.5 oz of gold.
You want us to devalue the dollar by about 60%, in the name of dollar stability?
If China sells US Treasury bonds somebody buys.
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