In this highly political environment, some think of the Fed as an oasis of collegiality, where the best interest of the economy is guarded with praetorian care – an institution that rises above the fray. Not so. The Fed is just as political as the rest of Washington D.C. and that is evident in the minutes. There’s a split at the Fed and it looks to be enough of a split to paralyze monetary policy. That divide is just as political as the splits in Congress that paralyze the Trump agenda. Talk about gridlock. We now have gridlock at the Fed and that’s why gold and silver have reacted so convincingly.
Gold up almost $9 at $1282
Silver up 42¢ at $17.10
We might be in the first stages of a breakout rally.