Did the Federal Reserve cut interest rates too early? All the leading indicators – whether the headline inflation data or the fine points in monthly reports – suggest the Eccles Building kicked off the easing cycle too prematurely. Of course, the Fed will do what it does best: shift the goalposts and use other inflation metrics to support the case for loosening monetary policy conditions.
Federal Reserve Digests the Data
The December Summary of Economic Projections, a quarterly survey of Federal Reserve officials and their views on the economy and policy, revealed a hawkish stance at the US central bank. While they have cut interest rates a full percent since September, policymakers will mostly sit on their hands this year. In 2025, the Fed is expected to pull the trigger on two quarter-point interest rate cuts, down from the initial estimate of two 25-basis-point reductions to the benchmark federal funds rate. Investors anticipate a rate pause at the January Federal Open Market Committee meeting.
Fed Chair Jerome Powell confirmed that the shift in tone was fueled primarily by inflation risks. A summary of the policy meetings indicated that participants are concerned about current inflation threats and the incoming administration’s proposed changes to immigration and trade. President-elect Donald Trump has proposed universal tariffs on all US imports, hefty levies on Chinese goods entering the country, and mass deportations.
Though Trump has outlined a blueprint, his public policy pursuits are not set in stone. Therefore, everything is speculative, making it difficult to craft forecasts or design monetary policy. For now, market observers can only comb through the data and find inflation is making a comeback.
As Liberty Nation News has reported, all the key inflation reports – the consumer price index, the producer price index, and the Federal Reserve’s preferred personal consumption expenditure price index – have risen since the Fed launched its rate-cutting cycle. The next set of readings is also expected to inch higher, according to the Cleveland Fed’s Inflation Nowcasting model. […]
— Read More: www.libertynation.com
It’s becoming increasingly clear that fiat currencies across the globe, including the U.S. Dollar, are under attack. Paper money is losing its value, translating into insane inflation and less value in our life’s savings.
Genesis Gold Group believes physical precious metals are an amazing option for those seeking to move their wealth or retirement to higher ground. Whether Central Bank Digital Currencies replace current fiat currencies or not, precious metals are poised to retain or even increase in value. This is why central banks and mega-asset managers like BlackRock are moving much of their holdings to precious metals.
As a Christian company, Genesis Gold Group has maintained a perfect 5 out of 5 rating with the Better Business Bureau. Their faith-driven values allow them to help Americans protect their life’s savings without the gimmicks used by most precious metals companies. Reach out to them today to see how they can streamline the rollover or transfer of your current and previous retirement accounts.
