All eyes are on the Fed and the upcoming policy meeting this week after last week’s disappointing inflation report. Experts fear that recently increased inflation will cause the central bank to be more aggressive in tightening monetary policy. Some Wall Street economists believe that the Fed will raise interest rates by 75 basis points in June or July. The main concern with all of this is whether the actions of the Fed and other central banks will tip the economy into a recession. The unknown is causing global stocks to fall sharply.

 

Fox Business/Megan Henney
‘Ugly’ inflation report could put Fed rate hike of 75-basis points on the table

The dismal May inflation report has some Wall Street economists betting that the Federal Reserve will raise interest rates by 75-basis points in June or July as policymakers try to tame runaway consumer prices.

A majority of traders are already pricing in an 80% chance of a half-point rate increase during the Fed’s June meeting, according to the CME Group, which tracks trading.

Another 20% of traders think the Fed will move even more aggressively with a 75-basis point increase, the first since 1994.

You can read the full article, here.

 

Yahoo Finance/Alexandra Semenova
Inflation puts pressure on Powell: What to know this week

The Federal Reserve will dominate the conversation for investors this week.

The central bank’s latest policy meeting will be held on Tuesday and Wednesday, June 14-15, with the Fed expected to announce at least another 0.50% increase in its benchmark interest rate on Wednesday afternoon.

Wednesday’s 2:00 p.m. ET policy announcement will be followed by a press conference with Fed chair Jerome Powell at 2:30 p.m. ET. The Fed will also release its latest summary of economic projections on Wednesday, offering officials’ forecasts for GDP growth, inflation, and future rate hikes.

Keep reading, here.

 

GoldSeek/Mark Mead Baillie
Gold Set to Reclaim 1900, then 2000

That title ain’t sayin’ that much: but ’tis better than returning to the 1700s. And ’tis based on a technical quirk at which you might smirk, but with Gold having so far survived its underlying support zone (1854-1779) here goes:

Gold just recorded a weekly gain of +21 points (+1.1%) which incorporated both a “lower weekly low” and a “higher weekly high”, (trader talk for an “outside week”). In this case, such price triumvirate (an up week and a “lower low” and “higher high”) has occurred just 12 other times in the past six years. And from those occasions, (drum-roll please): Gold’s average gain within the ensuing four weeks has been +45 points. Ho-hum, perhaps, but let’s see where that can put price. Employing such average gain from Gold’s weekly settle yesterday (Friday) at 1875, et voilà, there’s your 1920 between now and, let’s say, the Fourth of July, (just in case yer gettin’ fired up at home).

Continue reading, here.

 

 

 

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