This week, Fed Chairman Jerome Powell had his confirmation hearing in which he talked about the central bank’s plans to control inflation and support the economy and a strong labor market.
He announced that inflation was a “severe threat” to our nation’s full economic recovery and that the central bank is preparing to raise interest rates because the economy no longer needs emergency support.
“As we move through this year … if things develop as expected, we’ll be normalizing policy, meaning we’re going to end our asset purchases in March, meaning we’ll be raising rates over the course of the year. At some point perhaps later this year we will start to allow the balance sheet to run off, and that’s just the road to normalizing policy.”
And that balance sheet he mentioned, Fed officials added more than $4.5 trillion to it since the beginning of the pandemic.
Ahead of his testimony, Goldman Sachs announced they believe the Federal Reserve will actually hike interest rates four times in 2022.
Kitco News reports Powell’s testimony is giving hope to gold investors, who are now keeping a closer eye on what the first quarter of 2022 does for the precious metal.
Experts noted a price rally and said the key level to watch now is the $1,830 an ounce.
Inflation is hot right now. Consumer prices jumped 7% in December from the prior year. That’s the highest inflation rate recorded since 1982.
It shouldn’t be a shock that these rising prices for basically everything is putting financial pressure on Americans.
In fact, according to the annual New Year’s Resolutions Study by Allianz Life, one-quarter of Americans now view rising inflation as the single greatest risk to their retirement plans.
We, and other financial experts, have said time and time again that precious metals are a good hedge against inflation and help protect your financial future.
If you’d like to invest or learn more, give us a call at (855) 905-5317 for your free, no-obligation consultation.