Fed Up Friday: July 23-29

In case you missed it, here’s what the Fed’s been up to this week.

Gold Prices Spike after Fed Announcement

It was a big week for being fed up with central banking. The Fed’s July meeting and the FOMC’s statement were on Wednesday. As expected, the plans for a rate increase were put on hold, and the markets had little response with the S&P closing flat. However, investors poured into gold futures, which rallied to their highest level in two weeks on Wednesday, according to MarketWatch.

Dovish Fed Statement Sends Dollar Downwards

The Wall Street Journal’s Dollar Index showed the dollar down 0.2% among the euro, yen, and others. According to the Wall Street Journal, the dollar’s demise is likely due to investors who “believed the central bank wasn’t hawkish enough in its projects and left itself enough wiggle room to delay a rate increase until the end of the year.” Few investors seemed bullish for the dollar given the lack of faith in a rate increase until the end of the year.

Democratic Party Vowing to Change Fed Appointments

In a new platform statement prior to their convention, the Democratic Party included language that would ensure that “executives of financial institutions are not allowed to serve on the boards of regional Federal Reserve banks or to select members of those boards.” According to a Bloomberg article, the move would destroy the “system of checks and balances that apportioned representation in the district banks in a fair, broad-based fashion.” In short, the proposal will eliminate candidates with the most experience. Eliminating the Fed completely would also fix the problem.

Janet Yellen’s Security Detail Gets Audited

Apparently, the Fed’s inspector general was asked to conduct an audit of the Chairwoman’s personal security detail. The assessment began after complaints from Yellen’s neighbors that an “armed camp” sat outside her house within the gated Washington community, according to the WSJ. In the end, the IG determined Mrs. Yellen’s security was at an “appropriate” level of protection.

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