Contact us
CALL US NOW 1-888-GOLD-160

Fed Up Friday: Overly Cautious Fed Can’t Figure Out Trump

  by    0   0

This week, the national debt edged closer to $20 trillion, double what it was at the beginning of Obama’s presidency. The FOMC minutes were also released from their latest meeting. As it turns out, the Federal Reserve just doesn’t know how Trump’s incoming presidency will affect the economy.

Trump is Stumping the Federal Reserve

Some are calling it a “climate of uncertainty” for the economy this year, and the Fed doesn’t seem to know what to expect from Trump when he takes office in a few weeks. FOMC expectations are high that the president-elect’s tax cuts and fiscal spending will goad inflation to rise, increasing the need for interest rate increases. At this point, some Fed members can’t decide if Trump’s going to grow the economy or balloon inflation. Given the abundance of uncertainty in European politics and policies at home, the Fed’s path to three rate increases this year will be a rocky one.

Fed Up Friday

Bill to Audit the Fed is Gaining Traction

The controversial bit of legislation to audit the Fed, spearheaded by Rand Paul, has been reintroduced. Having been shot down numerous times before, such a bill could find its chances of passing with a Republican-controller house and senate and an incumbent Commander in Chief who’s also called for an audit.

If the bill passes, the Fed’s meetings and deliberations would be closely watched by a Government Accountability Office. Many Republicans believe that the Fed is too powerful and lacks oversight when deciding on monetary policy. Janet Yellen and others have stated that the policy would cause too much political pressure and discourage enforcing economic benefit to the overall economy.

Fed’s Lack of Confidence for 2017 is Helping Gold

The release of the FOMC minutes this week has left the dollar falling, and bolstered gold towards a one-month high. Overall, gold had good gains in 2016, up a total of 8.5%, and the quick bump at the end of the year has helped it start 2017 off on the right foot.

Under Obama’s Reign the Debt Nearly Doubled

19.98 trillion dollars is almost an inconceivable number even when it’s not connected to the national debt. That’s right, the US National Debt ended the year and Obama’s reign at $20 trillion worth of debt and much of which is the result of the Fed’s open market operations and quantitative easing.  That’s an 88% increase from where we were on January 20, 2009.

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Arizona Governor Signs Bill to Repeal State Capital Gains Taxes on Gold and Silver

Good news for precious metals investors in Arizona. On Monday, Gov. Doug Ducey signed a bill into law that eliminates states capital gains taxes on gold and silver specie. It tax repeal will not only benefit Arizonans who invest in gold and silver, it will also facilitate their use as currency and undermine the Federal […]


Moody’s Drops China’s Credit Rating as Debt Piles Up

The US government isn’t the only one piling up debt. We’ve reported on the ticking debt bomb in the US. Apparently, the timer is ticking in China as well. This week, Moody’s downgraded the country’s credit rating from A1 to Aa3, and changed its outlook from stable to negative. It was the first downgrade of […]


Jim Rickards: Don’t Watch the Circus in D.C., the Real News Is Gold

Over the last few weeks, the media has fixated on whether or not firing FBI director James Comey and allegations of Russian collusion will turn into Donald Trump’s Watergate. But in a recent column, economic analyst Jim Rickards said that really isn’t the most significant thing that‘s happened. While everyone is focused on the Washington […]


Trump, Watergate and Gold

Could Trump be facing his own Watergate? The president’s firing of FBI director James Comey in the midst of probes into the administration’s possible connections with Russia set off a political firestorm. There has even been talk of impeachment in recent weeks. While at this point, much of the rhetoric spinning around the Beltway is […]


Everything’s Better in Gold! Even Toilets

Everything is better when it’s dipped in gold! So, how about a $1 million gold toilet? The rapper Birdman has one. He posted a photo of it on Instagram. And that’s just one of the crazy things coated in gold recently highlighted on CNBC’s “The Filthy Rich Guide.” Related


Comments are closed.