As rate hikes continue, Bloomberg Intelligence predicts “a severe global economic reset,” with gold hitting record highs in 2023. “The inevitable Fed pivot will push gold prices above their $1,700-$2,000 trading range that has dominated since 2019,” said BI’s senior macro strategist Mike McGlone. At the Fed’s most recent meeting, Chairman Jerome Powell gave no indication of when rate hikes would end. “The reality is we’re going to react to the data… So if we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have do more and raise rates more than is priced in,” he said. In other news, Missouri senator Eric Schmitt called Biden’s State of the Union speech “the epitome of tone deaf,” explaining that the president said nothing to change the trajectory of our current inflation crisis.
Kitco News/Anna Golubova
The world is in the midst of a ‘significant macroeconomic reset’ and gold is the ‘shining star’ – Bloomberg Intelligence
With the Federal Reserve and other major central banks still raising rates into a looming global recession, Bloomberg Intelligence is projecting “a severe global economic reset,” with gold set to be one of the top commodity assets this year.
“We see gold as the potential shining star this year,” said Bloomberg Intelligence senior macro strategist Mike McGlone. “The Federal funds rate … [is] still rising [and] may represent the early days of what we see as a severe global economic reset. The enduring gold bull and crude-oil bear markets may be energizing.”
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CNBC/Jeff Cox
Fed Chair Powell says inflation is starting to ease, but interest rates still likely to rise
Federal Reserve Chairman Jerome Powell said Tuesday that inflation is beginning to ease, though he expects it to be a long process and cautioned that interest rates could rise more than markets anticipate if the economic data doesn’t cooperate.
“The disinflationary process, the process of getting inflation down, has begun and it’s begun in the goods sector, which is about a quarter of our economy,” the central bank chief said during an event in Washington, D.C. “But it has a long way to go. These are the very early stages.”
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Fox Business/Kristen Altus
Missouri senator gives Biden’s speech last night a reality check: ‘Disconnected’
Following President Joe Biden’s State of the Union address Tuesday evening, Missouri Republican Sen. Eric Schmitt wasted no time giving the speech a reality check, calling it “completely out of touch” and “disconnected” from the truth.
“It’s disconnected from reality. There’s just no other way to put it,” Sen. Schmitt told Fox News Digital Tuesday moments after the address. “It’s like Groundhog Day. It’s the same speech from last year, and nothing’s gotten any better. Things have gotten worse for people. That’s because this president is beholden to the radical left and their agenda that makes life more difficult for average Americans.”
During his speech, the president touted various spending bills passed by Democrats over the last two years and even touted incorrect jobs numbers. Biden additionally claimed that Republicans want to take the economy “hostage.”
You can read the full article, here.
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