Home InfoVault Market Reports Statements From The FED Chairpersons. What Do They Mean?

Statements from the FED Chairpersons. What do they mean?

Statements from the FED Chairpersons. What do they mean?
Category: Market Reports
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Posted: 04-12-2016 11:00:00 AM

So if you follow the comments of Fed chairperson, Janet Yellen and IMF Director Christine Lagarde, they both seem to paint a picture that the economic landscape is a rocky road at best.

The price of gold starts off the week on solid ground at a three week high. All four metals in the green this morning, as we witness weakness in the U. S. dollar.

New York FED president William Dudley said Friday, “Uncertainty over the outlook for the U.S. economy is higher than usual, which calls for a cautious and gradual approach to interest-rate increases. The factors behind the financial turbulence we saw earlier this year do not yet appear to be resolved fully.” 

IMF President Christine Lagarde last week called on policymakers to pass a range of economic reforms to avoid the trap of years of lackluster growth — a trap which the International Monetary Fund’s managing director said risked stoking frustrations with the global economic and political establishment. Global growth “remains too slow, too fragile and risks to its durability are increasing,” Ms Lagarde said on Tuesday in Frankfurt, adding that the threat of a “new mediocre” of weak economic progress had risen.

So if you follow the comments of Fed chairperson, Janet Yellen and IMF Director Christine Lagarde, they both seem to paint a picture that the economic landscape is a rocky road at best.

Another problem that both Europe and the U. S. must address is pension reform. It is my belief that this topic needs to be addressed immediately. And with our 19 trillion dollar debt problem and the Greece debt problem (which seems to be Germany's biggest headache, besides the migrant issue) most legislators here and in Europe just don't want to bring up the topic in any conversation. At the state level here, there are big problems in California, Illinois, and New Jersey with legislators there trying to figure out how to meet their future obligations. So whether it is issues at the state level, FED level or over in Europe, higher interest rates are not the answer and rate hikes here are so out of the question in my opinion. The FED will not have the data they need to raise rates anytime soon.

What I do expect you will see is a gradual increase in the gold price as all these problems come to a head. One by one, investors will see the writing on the wall and in turn look to gold to be their investment of choice as the world battles all these problems that JUST WON‘T GO AWAY.

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About The Author

Walter Pehowich Author Name: Walter Pehowich
This editorial has been prepared by Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not prove to be true, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept the foregoing.

What are your thoughts? Statements from the FED Chairpersons. What do they mean?