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Fed’s Vulnerability is Gold’s Strength
by Stephen Flood GoldSeek
We discuss the Federal Reserve often because the more the Fed tries to ‘undo’ its past policy mistakes and alters the markets through its poor policies, the more gold and silver prices are likely to rise! Yesterday’s meeting is an example: the more the Fed Chairman spoke the more the metals prices rose.
As largely expected, the Federal Reserve increased the Fed funds rate an additional 25 basis points to a range of 5.00% to 5.25%. The overriding message was “we will now wait-and-see”.
The main change in the statement from the March meeting statement was the removal of the sentence: The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.