by Chris Marcus, Miles Franklin:
This week the Federal Reserve had its latest policy meeting, and as widely expected raised its short-term interest rate by another 25 basis points. Which given the precarious state of today’s economy, is great reason to purchase gold and silver as a response.
Because while the Fed under chairman Jerome Powell claims to see only positives for the economy going forward, the rest of the world is experiencing a much different reality.
As a result of the Fed’s interest-rate increases in recent years, many of the emerging market economies are already experiencing currency chaos. And while wider turbulence has yet to impact the pricing in the U.S. markets, the evidence that the real estate market is running into trouble continues to emerge. With similar consequences becoming increasingly more likely in the stock and bond markets as well as the Fed continues to attempt to unwind its low-interest-rate policy.