Gold prices are seeing little movement Wednesday afternoon after the Federal Reserve downplayed rising inflation and reiterated its stance that it is in no hurry to tighten monetary policy anytime soon.
As expected, the U.S. central bank left interest rates unchanged at its zero-bound range between 0.00% and 0.25%. The central bank provided little insight into the health of the economy and said that rising inflation pressures were transitory.
As expected, the U.S. central bank left interest rates unchanged at its zero-bound range between 0.00% and 0.25%. The central bank provided little insight into the health of the economy and said that rising inflation pressures were transitory.
“Amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened. The sectors most adversely affected by the pandemic remain weak but have shown improvement,” the central bank said in its monetary policy statement. “Inflation has risen, largely reflecting transitory factors. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.”
Adam Button, senior currency strategist at Forexlive, said that the central bank’s statement on the economic recovery is not as strong as it could have been.
“There is very little to digest here,” he said.
The monetary policy committee reiterated its stance that it will maintain its current accommodative policies for the foreseeable future.
“With inflation running persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer-term inflation expectations remain well anchored at 2 percent. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved,” the central bank said.
Although gold prices are off their session lows, they have not seen much reaction to the latest monetary policy statement and remain under modest selling pressure. June gold futures last traded at $1,774.50 an ounce, down 0.24% on the day.
Katherine Judge, senior economist at CIBC, described the latest monetary policy statement at “uneventful.”
“It will likely take at least a few months of solid job gains to make progress in that regard, as well as evidence that Covid variants aren’t derailing the recovery. We’ll be listening to Powell’s press conference for any hints that the Fed might be getting closer to a position to update their forecasts in a way that pulls the timing of the first rate hike forward, should underlying inflationary pressures in 2022 appear more persistent than they’ve currently allowed for,” she said.
Written by Neils Christensenz for the KITCO ~ April 28, 2021
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About admin
Please allow me to introduce myself; I am Jeffrey Bennett, President of Kettle Moraine, Ltd., the parent of Sierra Madre Precious Metals.
I have been married for 53 years with two children and four grand-children, a veteran of Viet Nam, student of history (both American and film), and was host for fifteen years of Perspectives on America on the alternative airwaves, covering such subjects as, health and wellness, news, political satire, education and editorial commentary on current events through the teaching of history, and Protecting Your Wealth. In early 2018, I took a several month hiatus to complete some family business but returned to airwaves April 17, 2018).
At the age of ten, I sat in a bank-vault in the Citizens Bank of Mukwanago, Wisconsin with my grandfather going through bags of old American Peace dollars, hand-selecting each coin as dated rolls of 20 coins were carefully put together and rolled. Learning of the history of these beautiful pieces of Americana, I asked my grand-father, "Why are we doing this?" to which he replied, "Because someday they are going to do the same thing with the silver in our money that, that (S.O.B.) Roosevelt did with gold in 1933." It took only six-years for his prediction to come to pass at the hands of a disciple of Roosevelt's... and what will a Federal Reserve 'dollar' purchase today - and what will that old 90% Silver Peace Dollar purchase?
Although at the age of ten, there was little understanding of the meaning of it all, over the next half-century I became well-versed on the subject matter. During this summer of my education, I began to purchase silver coins as a collector and some small, international gold coins two years later - not an easy feat in the shadow of the Roosevelt confiscatory policies of 1933. Although those policies remained in effect until the mid-1970's, it was not until 1991 that I found that one could make a living providing precious metals and collectible, historic numismatic coins to a willing and concerned clientele.
It was also during that year, that I began a relationship with one of the first Trust companies to give the public access to gold and silver as part of an Individual Retirement Account (IRA) - and Kettle Moraine, Ltd., founded in 1995, but have ceased providing service due the the intense change-over of the provider.
In November 2011, after a 15 month broadcast on another network, I returned to the airwaves with my then revamped program, Life, Liberty & All That Jazz, and for over 28 years, I have been proud to serve the family of listeners of my numerous broadcast programs for physically-held precious metals for investors and collectors alike. On March 23, 2020 I launched my brand new - appropriately named program, The Edge of Darkness on the Republic Broadcasting Network, and thus continue to remain available to our long time clients and their families. Ah yes - find out what "inter-generational" wealth provision has done for our clients over the past three decades.
Don't buy the sizzle of that steak until you understand the cost! In other words, don't buy the bull being dispensed by the 'rare coin' pitchmen until you understand the full story. We, at Sierra Madre Precious Metals, will be proud to serve your needs.
