October CPI coming in cooler than expected ramped up expectations that the Federal Reserve is at the end of its inflation fight. In fact, many analysts now expect the Fed to begin cutting interest rates in 2024.
Looking at the bigger picture, inflation’s apparent retreat boosted mainstream belief that the economy will glide to a “soft landing.” With a lot of economic data weakening, the markets anticipate that the Fed will proactively cut rates to preempt a recession and prevent a crash landing. The thinking is as soon as it sees the economy coming in for a landing, it’s going to cut rates to ensure that landing is soft.
The financial crisis that kicked off in March continues to bubble under the surface.
Total outstanding loans in the Federal Reserve’s bank bailout program jumped by just over $5 billion in November.
The latest buzzword in the mainstream financial media is “soft landing.” Everybody seems convinced the Fed has beaten inflation, and that it has completely avoided pushing the economy into a recession. According to the mainstream narrative, we may see a bit of an economic slowdown in the months ahead, but a recession is pretty much off the table. In his podcast, Peter Schiff explains why a soft landing is impossible.
Everybody seems convinced that the Federal Reserve has won the inflation fight, there will be no more interest rate hikes, and rate cuts are right around the corner. But as Friday Gold Wrap host Mike Maharrey reminds us, it’s not over until the fat lady sings. And she hasn’t sung a note. In this episode, he breaks down the latest CPI data and explains why the victory dance might be premature.
The October CPI came in lower than expected, sparking a rally in stocks, bonds, and gold. Cooling prices reinforced the belief that the Federal Reserve won the inflation fight and the rate hiking cycle is over. In his podcast, Peter Schiff explained why the demise of inflation is greatly exaggerated.
Optimism is driving the markets. Most investors seem to believe the economy is strong. The consumer is resilient. Price inflation is easing. And most people think the Federal Reserve is finished hiking rates. In his podcast, Peter Schiff explained why this investor optimism is at odds with reality.
Mainstream media pundits and politicians generally act unconcerned about the skyrocketing national debt and ever-growing budget deficits, but somebody has taken notice.
On Friday, Moody’s Investor Service lowered its outlook on US government credit from “stable” to “negative.” This could be a prelude to a downgrade in the country’s AAA credit rating. The agency typically resolves an outlook by either revising it back to stable or executing an actual downgrade within 18 to 24 months.
Mainstream pundits and government officials keep talking about the strong economy and resilient consumers while ignoring what’s driving them – borrowing. To listen to them, you would think the road to prosperity is paved with credit cards. In this episode of the Friday Gold Wrap host Mike Maharrey breaks down the recent household debt data and explains why this isn’t the sign of a strong economy. He also highlights some interesting silver demand news.
Mainstream financial network pundits and government officials keep telling us that the economy is chugging along because Americans continue to spend money. But it’s clear that borrowing is the only thing sustaining this spending spree.
Meanwhile, the “resilient” American consumer is drowning under a surging tidal wave of debt.
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.
