It’s time to “be bold” in gold, according to Quill Intelligence CEO Danielle DiMartino Booth, who predicts more bank collapses on the horizon. “This is the time when you can be bold in your allocation to precious metals… If there is major upheaval in a market, it is when everyone is afraid to get back in the water that it’s really the best time to go swimming,” Booth told Kitco News. Hedge fund manager Bill Ackman also sees the U.S. headed for a “train wreck” following the 25-basis-point hike. “We are suffering from self-inflicted wounds… When combined with the higher cost of debt and deposits due to rising rates, consider what the impact will be on lending rates and our economy,” Ackman said. Even Fed Chair Jerome Powell’s preferred bond-market indicator is signaling a recession: the spread between the current yield on three-month Treasury bills and their expected yield in 18 months is now inverted by a record 134 basis points.

Kitco News/Cornelius Christian & Michelle Makori
‘More bank failures’ coming as Fed hikes rates 25 bps, now is the time to ‘be bold’ in gold – Danielle DiMartino Booth

The Federal Reserve hiked its key policy rate by 25 bps on Wednesday to the 4.75- 5.00 percent range, with Fed Chair Jerome Powell announcing that rate cuts are unlikely in 2023. Powell’s comments come after a series of major bank collapses in March including those of Silicon Valley Bank (SVB) and Signature, both of which had hundreds of billions in assets under management.

According to Danielle DiMartino Booth, CEO of Quill Intelligence and Author of Fed Up: An Insider’s Take on Why the Federal Reserve is Bad for America, “more bank failures” are coming. She pointed in particular to First Republic, a California-based commercial bank which is teetering on the edge of collapse.

Continue reading, here.

Fox Business/Megan Henney
Bill Ackman warns US economy headed for ‘train wreck’ after latest Fed rate hike

The U.S. economy may be headed for a “train wreck” after the Federal Reserve continues its fight against inflation and Treasury Secretary Janet Yellen ruled out “blanket” protection for bank deposits despite the worst financial crisis in a decade, according to hedge fund manager Bill Ackman.

Ackman, who founded Pershing Square Capital Management, sounded the alarm on Wednesday about a possible acceleration of deposit outflows from banks after Yellen indicated that not all uninsured deposits will be protected in future bank failures.

You can read the full article, here.

Business Insider/Phil Rosen
A recession is guaranteed this year based on Jerome Powell’s favorite bond-market gauge

Fed Chairman Jerome Powell’s preferred bond-market metric is signaling that a recession is certain this year and that rate cuts are also coming.

The spread between the current yield on three-month Treasury bills and their expected yield in 18 months is now inverted by a record 134 basis points.

That’s more than the previous record set in January 2001, about two months before a recession began in the US, according to Bloomberg.

You can read the full article, here.

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