Independent Advisor Alliance CIO Chris Zaccarelli believes the Fed is a bigger risk in 2022 than inflation. On “Mornings with Maria” he said in part, “I think the Fed is a bigger risk, I mean, clearly, inflation is what’s driving the Fed’s actions, and so you can say inflation is the cause of what’s driving the Fed to make that huge pivot…” In other news, another expert is predicting good things for gold in the new year.

 

Fox Business/Fox Business Staff
Fed a ‘bigger risk’ in 2022 than inflation, market expert warns

During an interview on “Mornings with Maria” Independent Advisor Alliance CIO Chris Zaccarelli argued that the Federal Reserve will be a “bigger risk” than inflation in 2022.

“I mean, I think the Fed is a bigger risk, I mean, clearly, inflation is what’s driving the Fed’s actions, and so you can say inflation is the cause of what’s driving the Fed to make that huge pivot. One that Powell made in December. And then in the minutes, we were able was revealed that the other members maybe are even more hawkish than Powell let on as of last month. So I think ultimately it’s the Fed that drives everything if the Fed gets really, really aggressive runs off the balance sheet in addition to raising rates too quickly, that’s a risk for the markets…”

Watch the full interview, here.

 

CNBC/Abigail Ng
Spot gold at $2,100? Commodities analyst says gold could test new highs this year

Gold could test new highs of $2,100 per ounce this year, according to a resource analyst at fund management company Fat Prophets.

U.S. dollar weakness and inflation are some factors that are likely to boost the precious metal’s prices, David Lennox told CNBC’s “Street Signs Asia” on Monday.

“We do think across the course of 2022, we will see the gold price testing at the all-time record highs, but we can’t see it traveling much beyond that once it gets there,” he said.

Gold prices closed at a record $2,063 in August 2020, according to data provider Eikon. It was trading at about $1,814 per ounce on Wednesday morning in Asia.

You can read the full story, here.

 

Barron’s/Randall W. Forsyth
Fed Minutes Suggest More Stock-Market Turmoil Could Lie Ahead

Sometimes you need to read something in black and white to believe it. That may explain why the stock market sold off sharply on Wednesday afternoon in reaction to the minutes of December’s Federal Open Market Committee meeting. They suggested the Federal Reserve could begin to let its balance sheet shrink sooner than market participants apparently had anticipated.

That investors were surprised is somewhat surprising. Speeches from senior central bank officials such Fed Gov. Christopher Waller had suggested the Fed should begin to shrink its $9 trillion balance sheet “much sooner and faster” than it had in 2014.

The Fed’s purchases of securities add liquidity to the financial system, and vice versa. The central bank is continuing to buy Treasury and agency mortgage-backed securities, albeit at a slower pace, and should wind up its bond buying around March.

You can read the entire article, here.

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