Ark Invest CEO Cathie Wood is warning that if the Fed doesn’t pivot from its aggressive monetary tightening, it could spark the next Great Depression. In a series of tweets, she said, “If the Fed does not pivot, the set-up will be more like 1929. The Fed raised rates in 1929 to squelch financial speculation and then, in 1930, Congress passed Smoot-Hawley, putting 50%+ tariffs on more than 20,000 goods and pushing the global economy into the Great Depression. Unfortunately, today has some echoes of the same. The Fed is ignoring deflationary signals, and the Chips Act could harm trade perhaps more than we understand…” In other news, some experts argue that gold and silver prices are about to shift into high gear.

Business Insider/Huileng Tan
The Fed made a ‘serious mistake’ by raising interest rates, and it could land the US in another Great Depression, says Ark’s Cathie Wood

The Federal Reserve runs the risk of sparking a major US downturn — just like the Great Depression — if it does not pivot from its monetary tightening path despite cooling inflation, Ark Invest CEO Cathie Wood has said.

Wood drew parallels between the current situation and the events that led up to the Depression in 1929, in a string of tweets Saturday.

In June 1920, the global economy was just working its way out of the impact of World War I and the Spanish flu outbreak of 1918, which contributed to supply chain and other shocks that pushed up inflation to 24%, Wood said.

You can read the full story, here.

Rick’s Picks via GoldSeek/Rick Ackerman
Finally, the Wind May Have Shifted for Gold

Gold Loses Status as Haven, declared a headline in the Wall Street Journal on September 22. Two days later, gold fell to $1629, the lowest daily close in more than two years; then it began an ascent that has continued to this day. A case of yet one more cover-story curse signaling a major trend change? Quite possibly.

The backdrop for gold’s rise is a commodity bear market that dragged along for 48 years but which appears to have bottomed in 2020 with a false breakout in the CRB Index. False breakouts often signal trend reversals, and so far this indicator seems to be working. The commodity bull has unfolded with enough vigor, seemingly, to last for a decade or longer. As for gold, it recently began to show signs of life following a steep selloff begun last March. The GDX:GLD ratio that tracks the relationship between mining stocks and the price of gold looks like it is breaking out, with miners outperforming bullion. This is usually an early sign that the precious metals market is about to shift into high gear.

Because gold and silver can be expected to make their biggest percentage gains near the end of their respective bull markets, there is still time to board the train and start accumulating. Before this bull market has run its course, I expect gold to hit $10,000 per ounce, and silver $350. A barrel of oil will be quoted at $250, and the HUI Gold Bugs Index, currently trading for around $275, will be trading north of $1,200.

You can keep reading, here.

Reuters via Yahoo News/Shubham Batra and Ankika Biswas
Wall St eyes lower open after hawkish Fed comments

Wall street’s main indexes were set to open lower on Monday as hawkish comments from a U.S. Federal Reserve official over the weekend tempered hopes of the central bank toning down its aggressive monetary policy approach.

Federal Reserve Governor Christopher Waller, a voting member of the rate-setting committee this year, said on Sunday that markets should now pay attention to the “endpoint” of rate increases, not the pace of each move, and that the endpoint was likely “a ways off”.

The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that price pressures were easing and the Fed could scale back its hefty interest rate hikes.

Continue reading, here.

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