Craig Hemke, the founder of TF Metals Report, says the U.S. economy is about to officially be labeled as being in “recession.” With that, he’s looking ahead to Q4 to see what awaits precious metal prices. In other news, many states are taking steps to help give some relief to residents who are struggling with inflated prices. However, some experts believe that extra stimulus support could actually prolong inflation.

 

TF Metals Report via GoldSeek/Craig Hemke
Looking Forward 90 Days

As Q3 begins, the narrative of higher U.S. interest rates and a soaring dollar continues. But what will the narrative be by the end of Q3? Answer that question and you’ll know where COMEX precious metals prices are headed.

The year 2022 has certainly not been much fun for us precious metals enthusiasts. However, as the year began, we all knew that the Fed was embarking on a schedule of higher interest rates and lessening QE, so really none of the price action thus far should come as a surprise. In fact, it’s played out pretty closely to what we wrote in our annual forecast back in January…

Continue reading, here.

 

Axios/Kate Marino
Too much inflation aid from states could prolong the problem

Political efforts to blunt the impact of inflation could end up prolonging it.

Why it matters: Politicians are caught in a bind as to whether they should offer short-term inflation relief for struggling constituents — or help address the underlying causes by curtailing consumer demand.

Driving the news: Some states are touting “inflation relief” checks for residents — effectively amounting to fiscal stimulus — to help them deal with rising prices.

California is offering checks of up to $1,050 to individual taxpayers, as part of a $17 billion relief package signed last week, with more money going to those with lower incomes.

With state government coffers strong, places like Colorado, Indiana, Maine and Delaware are offering similar, smaller programs, mostly structured around tax rebates and enacted by both Democratic and Republican leaders

You can read the full article, here.

 

Business Insider/Theron Mohamed
‘Big Short’ investor Michael Burry predicts higher long-term inflation — and points to labor shortages and the onshoring boom as key drivers

Michael Burry predicted higher long-term inflation in the US, fueled by a shift towards more domestic production, a post-pandemic shake up of global supply chains, and a chronic shortage of manual workers.

“Onshoring/blue collar shortages plus global supply chain restructuring raise long-term inflation’s floor even as the bullwhip cycles lower to that end,” he wrote in a since-deleted tweet on Tuesday.

The investor of “The Big Short” fame attached a link to a Bloomberg article highlighting an onshoring boom in the US, after the pandemic sparked shortages, bottlenecks, and a surge in shipping costs.

Keep reading, here.

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