Federal Reserve Governor Philip Jefferson is warning that it could take “some time” to cool consumer prices. “Restoring price stability may take some time and will likely entail a period of below-trend growth,” he said. In other news, with gold and silver prices on the rise, experts are now debating how long the rally will last.

Fox Business/Megan Henney
Fed governor warns inflation fight could take ‘some time’

Federal Reserve Governor Philip Jefferson said on Tuesday the U.S. central bank remains determined to combat painfully high inflation, but warned the fight to cool consumer prices could take some time.

“We have acted boldly to address rising inflation, and we are committed to taking the further steps necessary,” Jefferson said in Atlanta in his first speech since joining the U.S. central bank as a governor in May. “My colleagues and I are resolute that we will bring inflation back down to 2%.”

The U.S. central bank has embarked on one of the fastest courses in history to raise borrowing costs and slow the economy.

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Business Insider/Matt Egan
Biden didn’t get us into this inflation mess; Jerome Powell did, Ro Khanna says

Congressman Ro Khanna wants Federal Reserve Chairman Jerome Powell to apologize for the central bank’s handling of inflation.

“I blame the Fed and I blame Powell for mismanaging the situation in the first place,” the Democratic Rep. told CNN in a phone interview. “He should take accountability that he messed up.”

Echoing concerns voiced by Massachusetts Senator Elizabeth Warren, Khanna said he is worried the Fed will now overcompensate by raising interest rates so aggressively that it tips the economy into recession.

Continue reading, here.

Kitco News/Anna Golubova
Will this silver and gold price rally last? Here’s what analysts are saying

In a surprise u-turn this week, silver and gold are trading at 3-month and 3-week highs, respectively. But is this a sustainable rally or just a short squeeze?

Even though silver has outperformed gold this week, both precious metals saw impressive performance. Some main drivers were a weaker U.S. dollar, falling U.S. Treasury yields, higher crude oil, and renewed safe-haven buying amid shifting Fed rate hike expectations and disappointing macro data.

“There have been vicious reversals in precious metals, with Gold +5%, Silver +14%, Platinum +9% and Palladium +11% the past five days,” said MKS PAMP metals strategist Nicky Shiels. “Gold has essentially erased 1/4 of the downtrend channel worth $460 (from March ’22 peak to its September tough), which started from its invasion/war peak price at $2,070/oz; silver has clawed back 2/5th (in 3 days!) of the same downtrend channel.”

You can read the full story, here.

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