All eyes are on the Fed this week, as Americans wait to see just how much the next rate hike will be. Experts estimate between 75 basis points and a full percentage point. “I do think they’re going to lean a little bit more hawkish on September,” said Jim Caron, head of macro strategies for global fixed income at Morgan Stanley Investment Management. “They’re just not seeing the progress on inflation.” Several experts have said that when the Fed pulls back on policy tightening is when gold prices will rise. In other news, The Schork Group says a “mild recession” is here.

 

CNBC/Patti Domm
The Fed could surprise markets by sounding even more aggressive as economy teeters

The Federal Reserve is widely expected to raise interest rates by another three-quarters of a point Wednesday, and it could surprise markets by sounding even more unrelenting about tightening policy.

That means the Fed would sound “hawkish,” or in a mode where it is bent on raising interest rates as much as it needs to in order to curb inflation. The central bank is expected to announce the rate hike Wednesday at 2 p.m. ET. Fed Chairman Jerome Powell then briefs the media at 2:30 p.m. ET.

A 75-basis point, or three-quarter point, hike would put the fed funds rate in a range of 2.25% to 2.5%. The Fed started raising interest rates in March, when the fed funds range was zero to 0.25%.

Keep reading, here.

 

Quoth the Raven
Russia And China Officially Announce A “New Global Reserve Currency”

If you’ve blinked over the last month, you may have missed it…

China and Russia are taking their shot at the U.S. dollar. And as often happens with consequential news in the United States and the West, no one seems to notice or even care.

Since the beginning of the year, I have been writing about the possibility of Russia and China challenging the US dollar’s global reserve status. Now, it’s happening.

You can read the full article, here.

 

Fox Business/Jack Durschlag
Group warns recession is here, energy prices, 2-day Fed meeting and more: Tuesday’s 5 things to know

Here are five key things that could impact Thursday’s trading.

‘MILD RECESSION’ IS HERE: The Schork Group principal Stephen Schork warned Monday that the United States is experiencing a “mild recession” and the “pull” on energy prices will be greater as the severity of the downturn intensifies.

“We know we’ve got runaway inflation,” Schork noted on Monday, arguing that there are “only two ways to attack inflation,” through supply construction or demand destruction.” He stressed that as it pertains to supply construction with regard to energy, more oil, natural gas and fossil fuels are needed in the market.

“The same goes for food. We are in a severe situation where we are not producing enough food, especially when we see this fall harvest and because of manipulation in that market.”

Continue reading, here.

 

 

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