Investors are anticipating that the Fed will double down and become more aggressive in its fight against inflation after this week’s Jackson Hole Symposium. It’s a move that Nobel Prize-winning economist Edmund S. Phelps agrees with. He also told CNBC that the U.S. needs to get productivity growth back to the kind of level that it was in the 50s and 60s.

Reuters via Yahoo Finance
Investors see no Fed pivot, brace for hawkish Powell message in Jackson Hole

Investors are bracing for the Federal Reserve to double down on its commitment to crushing inflation, and expect its chair Jerome Powell at the annual central bank gathering in Wyoming this week to deliver an aggressive tightening message and dash hopes for a rate cut next year.

The Jackson Hole, Wyoming retreat comes after investors last week viewed the transcripts from the Fed’s July meeting as leaning dovish and as a green light to put some risk back on the table. The stock market initially held up and bond yields were steady, before markets re-considered that interpretation.

Since the release of the Fed minutes on Aug. 17, the S&P 500 has fallen roughly 3.8%, the benchmark 10-year Treasury yield has risen about 10 basis points (bps) and nudged back above 3%, and the dollar gained around 1.7% against the yen, the currency pair most sensitive to rate expectations.

You can keep reading, here.

CNBC/Jenni Reid
Nobel prize winner says the U.S. needs a 1950s-style productivity boom

The U.S. needs to return to the kind of economic and productivity growth it saw in mid-20th century to boost public spirits, according to a Nobel Prize-winning economist. 

“We badly need to get back to economic growth,” Edmund S. Phelps, director of the Center on Capitalism and Society at Columbia University, told CNBC’s “Squawk Box Europe” on Wednesday. 

Continue reading, here.

GoldSeek/Jordan Roy-Byrne
The Best Historical Comparison for Gold & Silver

One reason the history of markets is fascinating is that we can glean clues about the future. History repeats itself, but it often rhymes.

For precious metals, the last six years lack a strong comparison.

There has not been a similar period in which the Gold price rallied back to its all-time high, while the dollar was buoyant and the stock market remained in a secular bull market.

One must use Intermarket Analysis and look beyond nominal terms to find a comparison.

For example, the Gold to S&P 500 ratio is lower than six years ago, but Gold is much higher.

You can keep reading, here.

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60 Years Experience


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