Looking forward the Fed will raise interest rates exacerbating inflation even more. Never in human history has a titular head of government f’d up his country so quickly.
What I’ve been reading is that they’re planning at least three, possibly four interest rate-hikes in 2022 into 2023.
Precious Metals reacting BIGLY on the news:
Mama LIKE! :)
I see three raises max over the next few months. Powell owes Biden for re-nominating him and the Fed will want to avoid appearing to interfere in the 2022 election. He also knows if the market plunges there will be a negative wealth effect which could reduce consumer spending. For those reasons he will, if inflation persists, try to rein it in by other means and try to get into November before resuming rate hikes. JMHO
I don’t think this is a mistake.