On Wednesday, the Fed is expected to announce it will start to unwind its $120 billion monthly bond purchases. The program was put in place at the beginning of the pandemic to help support the economy. Experts say Fed Chairman Jerome Powell will stress that the end of the bond program and the start of rate hikes are not connected. It’s predicted that the tapering could happen as soon as this month. In other news, a new AP-NORC poll found that half of Americans now say that they expect the economy to get worse within the next year.

 

CNBC/Patti Domm
The Fed is expected to announce end to bond-buying program as investors seek clues on first hike

This week, the Federal Reserve is widely expected to announce the unwinding of its monthly bond-buying program – a measure it started to support the economy during the pandemic. However, the bigger story for markets is how the central bank will discuss inflation.

That’s because report after report of hotter-than-anticipated inflation has ramped up expectations that the Fed will fight the trend of higher prices by beginning to raise interest rates next year, about six months sooner than the last Federal Reserve forecast.

Economists expect the central bank to say after its 2-day meeting concludes Wednesday that it will begin winding down its $120 billion in monthly bond purchases by mid-November or December and end the program entirely by the middle of next year.

You can read the full story, here.

 

AP/Ken Sweet and Emily Swanson
Americans sour on economy amid inflation woes: AP-NORC Poll

Americans’ opinions on the U.S. economy have soured noticeably in the past month, a new poll finds, with nearly half expecting economic conditions to worsen in the next year.

Just 35% of Americans now call the national economy good, while 65% call it poor, according to a poll by The Associated Press-NORC Center for Public Affairs Research. That’s a dip since September, when 45% of Americans called the economy good, and a return to about where views of the nation’s economy stood in January and February, when the pandemic was raging across the nation.

The deterioration in Americans’ economic sentiments comes as the cost of goods is rising nationwide, particularly gas prices, and bottlenecks in the global supply chain have made purchasing everything from furniture to automobiles more difficult. The Labor Department reported earlier this month that consumer prices in September rose 5.4% from a year earlier, the largest one-year increase since 2008.

Read the entire story, here.

 

Kitco News
Gold price and silver price to ‘eclipse’ record highs in 6 months, this is the trigger

It’s been “a mad world” out there with record-high equities, real estate and more. But the long-awaited surge in gold and silver is coming in the next six months, said Mike Larson, senior analyst at Weiss Ratings.

“If you’re in a world where many assets are over-valued, where real estate is extremely highly valued, stocks are extremely highly valued, and so on. What hasn’t run up and remains relatively cheap? The biggest, most obvious answer to me is precious metals. And of course, the shares of the companies that mine them,” Larson told Michelle Makori, editor-in-chief of Kitco News, on the sidelines of the New Orleans Investment Conference.

What’s been holding gold and silver back this year is the fear that the Federal Reserve will have to act aggressively and raise interest rates quickly in order to fight off inflation.

But that is not going to happen, according to Larson. “There’s going to be a realization in early 2022 that the Fed is not going to be able to be aggressive. People need to realize that this Fed is very tentative. It’s a Fed that has a lot of political pressure to favor the employment side of its mandate over inflation.”

You can read the full story, here.

 

 

 

 

 

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