Silver as an investment

Category Archives: Federal Reserve System

Obama, Bernanke and Yellen Rigged the Bond Market. Now it’s Trump Turn to Dance or be their Dunce! – By Michael Carino

Government dysfunction is at its worst.  We voted them in.  We have no one to blame but ourselves. Granted, the choices were abysmal. But the Republican and Democratic parties, with no third party competition, can continue to run dysfunctional governments, whittling away our dominant global position until the cracks of our broken government becomes abundantly […]

Did The Fed Just Hint At Monster Inflation?

We won’t bore you with yet another article about the recent rate hike by the Federal Reserve. This move was widely expected, as the Fed members had been hinting this would happen for several months now. Additionally, the new ‘hints’ about an additional two rate hikes later this year also didn’t surprise the market as […]

Another “Recession Dead Ahead” Indicator Just Hit

During the FOMC press conference this week, Janet Yellen was pushed by Bloomberg’s Kathleen Hays to explain why she hiked rates amid what was evidently not a surging economy. While Q1 looks to be the weakest economic growth period for a rate hike since 1980…    Today we got some more weakness-confirming real-time ‘hard’ data […]

“This Is Not The Reaction The Fed Wanted”: Goldman Warns Yellen Has Lost Control Of The Market

With stocks soaring briskly around the globe following Yellen’s “dovish” hike, and futures set for a sharply higher open with the Nasdaq approaching 6,000, something surprising caught our attention: in a note by Goldman’s Jan Hatzius, the chief economist warns that the market is overinterpreting the Fed’s statement, and Yellen’s presser, and cautions that it […]

RBC: “The Fed Is Now Forced To Walk Back The Market’s Incorrect Dovish Interpretation”

First, it was Goldman’s chief economist Jan Hatzius, who in a fascinating note explained why the market has totally misread the Fed’s tightening intentions, claiming the market surge is “not the reaction the Fed wanted”, alleging that the market’s dramatic “easing” response was “not the outcome the FOMC aimed for” and concluding that “at the […]

Rate Hike Hammers Dollar; Stocks, Bonds, & Bullion Soar

Before we start, we want to point out that if the Atlanta Fed GDPNOW forecast of 0.9% for Q1 is correct, this will be the weakest economic backdrop for the economy for a rate hike since 1980!! (according to Bloomberg data).   All we can say is…   The reaction post-Fed was dramatic to say […]

Stagflation Strikes As US Consumer Prices Surge At Fastest Pace In 5 Years

After the hotter-than-expected PPI print, Consumer Prices confirmed that inflation is running hot with the fastest rise since Feb 2012. Notably core CPI (at 2.2%) has been above The Fed’s mandated 2% ‘price stability’ level for 15 months in a row.   Of course, one of the big drivers of this price surge is in […]

JPM: “This Is The Bottom Line For Stocks”

While it has been a quiet session so far, today’s events have the potential to substantially boost market volatility. Here, courtesy of JPM’s Adam Crisafulli, is the “bottom line for domestic equities” and what to watch for among today’s information barrage. Market update – it was another relatively quiet night of news. US futures and […]

Stocks Drop, Bonds Pop As Crude & Credit Crash Continues

Overheard in the Oval Office when Yellen unleashes her rate hike into dismal economic growth expectations tomorrow…   Since the last fed rate hike, bonds are lower, banks are best…   Trannies and Small Caps are in the red since the last Fed rate hike…   A down day for stocks…but the dip-buyers were active […]

Goldman Changes Fed Forecast: Sees Rate Hikes In March, June And September; Earlier Balance Sheet Reduction

While we suggested that the lack of a solid rebound in average hourly wages clouded the Fed’s intentions on future rate hikes after March, Goldman had no such doubts and in a report issued moments after the “solid jobs report”, Goldman’s chief economist Jan Hatzius revised his forecast for upcoming FOMC moves, pulling forward the […]