This week Peter covers the highlights of a volatile trading week, paying special attention to Nvidia, Wall Street’s favorite AI stock, and Newmont Corporation, a heavy hitter in the gold mining industry. Both companies’ shares experienced dramatic price action this week, with NVDA gaining $260 billion in market cap and pulling the market up after an excellent earnings report. Newmont, on the other hand, saw shares fall 7% after a disappointing last quarter.
Two weeks ago, Federal Reserve Chairman Jerome Powell said it would be “premature” to conclude that monetary policy is sufficiently restrictive. This week, the Fed indicated rate cuts are on tap for next year. What a difference two weeks makes! In this episode of the Friday Gold Wrap, host Mike Maharrey breaks down this week’s Fed meeting and the status of the inflation fight.
The Federal Reserve just surrendered to inflation.
Fed officials won’t call it a surrender. They’re claiming victory. But surrender is the effect of the policy trajectory laid out by the Federal Open Market Committee (FOMC) at its December meeting.
Federal Reserve Chairman Jerome Powell said he’s not confident interest rates are high enough to slay price inflation. He also said he’s not confident they aren’t. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey wonders out loud why we should have any confidence if Powell doesn’t. Along the way, he breaks down the November Fed meeting and talks about the “colossal” year for central bank gold buying.
Chalk one up for the status quo.
As expected, the Federal Reserve held interest rates steady in a range between 5.25 and 5.5% for the second straight FOMV meeting, and chairman Jerome Powell was intentionally noncommital about future Fed moves.
The Federal Reserve wrapped up its September meeting on Wednesday and left interest rates unchanged. But Powell and Company had plenty to say. In this episode of the Friday Gold Wrap, host Mike Maharrey breaks down the rhetoric and argues that what the Fed says and what it will do are two different things.
The Federal Reserve held interest rates steady at the September FOMC meeting, but the committee indicated that it plans to hold rates higher for longer than originally projected.
As you digest the Fed meeting, it’s important to remember that there is a big difference between “saying” and “doing.”
The Federal Reserve raised interest rates yet again during its July meeting. So, what’s next? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about the Fed meeting and the weird messaging, and then speculates about the central bank’s next move given the current economic backdrop. He also talks about a lucky Oklahoma woman and her bag of “junk” silver.
I’ll say this about the Federal Reserve: it tends to follow the script.
Everybody expected that the central bank would hike rates at the July FOMC meeting, and that’s exactly what it did. The Fed boosted the federal funds rate another 25 basis points to 5.25 to 5.5%.
There is the mainstream and market perception of what going on in the economy and financial system. And then there’s the underlying economic reality. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about the growing divergence between the two in the context of the June Federal Reserve meeting and the latest CPI data.