Do you trust the Fed?
“I feel the current edition of Fed Heads will attempt to tackle inflation with 25 BPS rate hikes… The Fed has mentioned that they will be hiking rates 2-3 times in 2022… Well, if my thoughts are correct, that would only bring our base rates to 1/2% – 3/4%… How’s that going to tackle 14% inflation? It won’t… Meanwhile Main Street will continue to scramble.” – Chuck Butler
USAGOLD note: A number of analysts who concentrate on the fundamentals say the greatest fundamental of all is whether or not the investing public trusts the Fed. If it does gold tends to remain subdued. If it doesn’t, the lack of trust can fuel strong demand and future price increases. The 14% inflation rate comes from Shadow Government Statistics which calculates inflation using Bureau of Labor Standards methodology from the early 1980s.