Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek Radio: Raghee Horner and Bix Weir, and Chris Waltzek
By: radio.GoldSeek.com

Technical Scoop - Weekend Update May 20
By: David Chapman

Train Crash Preview
By: John Mauldin

Gold frequently disappoints Jim Grant, but does he understand why?
By: Chris Powell

Are You Still Fearful of Cryptos?
By: Ryan Wilday

THE SHALE OIL PONZI SCHEME EXPLAINED: How Lousy Shale Economics Will Pull Down The U.S. Economy
By: Steve St. Angelo

Ira Epstein's Metals Video 5 18 2018
By: Ira Epstein

Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Roughly 2% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Silver Report
By: Ira Epstein

It’s not stagflation, but inflationary impoverishment
By: Alasdair Macleod

 
Search

GoldSeek Web

 
Inflation is Here and the Fed Wants More


 -- Published: Thursday, 31 March 2016 | Print  | Disqus 

By Graham Summers

 

The Fed failed to hike interest rates in March despite the “data” hitting levels at which the Fed said it would hike. Indeed, the Fed even lowered its expected number of rate hikes for this year from four to two!

 

This confirms for us that the Fed does indeed want inflation.

 

In the last few weeks, several Fed officials, most notably Fed Vice-Chair Stanley Fischer stated not only that inflation was appearing in the US but that this is something the Fed “would like to happen.”

 

In separate prepared remarks in Washington, neither Fed Vice Chairman Stanley Fischer nor Gov. Lael Brainard made direct reference to next week’s meeting of the Federal Open Market Committee. But Brainard argued for patience in rate increases amid possible risks that inflation and U.S. economic activity will fall.

 

“Tighter financial conditions and softer inflation expectations may pose risks to the downside for inflation and domestic activity. From a risk management perspective, this argues for patience as the outlook becomes clearer,” Brainard said.

 

Source: CNBC

 

AND…

 

Inflation is showing signs it could accelerate in the United States, a top Federal Reserve policymaker said in comments that back the view that the central bank will hike interest rates again this year.

 

“We may well at present be seeing the first stirrings of an increase in the inflation rate,” Fed Vice Chairman Stanley Fischer said on Monday in prepared remarks, adding that faster inflation was “something that we would like to happen.”

 

Source: Reuters

 

With that in mind, take note that the Fed is finally achieving this, with US Core inflation well above the Fed desired rate of 2%:

 

 

 

Moreover,  “sticky inflation” (considered by some to be the purest “official” measure of inflation) has hit 3%.

 

 

And finally, the Cleveland Fed’s Median CPI is growing at an annualized rate of 2.8%.

 

According to the Federal Reserve Bank of Cleveland, the median Consumer Price Index rose 0.2% (2.8% annualized rate) in February...

 

Earlier today, the BLS reported that the seasonally adjusted CPI for all urban consumers fell 0.2% (-2.0% annualized rate) in February. The CPI less food and energy rose 0.3% (3.4% annualized rate) on a seasonally adjusted basis.

 

Over the last 12 months, the median CPI rose 2.4%, the trimmed-mean CPI rose 2.0%, the CPI rose 1.0%, and the CPI less food and energy rose 2.3%.

 

Source: Cleveland Fed

Put simply, the inflation genie is out of the bottle. Core inflation is already moving higher at a time when prices of most basic goods are at 19-year lows. Any move higher in Oil and other commodities will only PUSH core inflation higher.

The Fed is cornered. Inflation is back. And Gold and Gold-related investments will be exploding higher in the coming weeks.

Best Regards

 

Graham Summers

Chief Market Strategist

Phoenix Capital Research


| Digg This Article
 -- Published: Thursday, 31 March 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.