Federal Reserve Bank of Richmond’s President, Jeffrey Lacker, said today there is a “strong case” for a rate hike in September. Lacker said recent GDP and employment numbers point to a recovery in the second half of 2016. He also indicated that he believes that Fed interest rate policy was likely too low and the Fed needs to “make up some ground” on rate policy.
This is getting beyond ridiculous. As the comment was released, profit taking came into the gold market and the price of gold declined.
I am amazed how these comments are allowed as each time a Fed President takes a position it has an impact on many markets, especially ours.
As I reported when the last Fed meeting minutes were released, there seemed to be a split down the middle between the doves and the hawks on the committee in regards to when or if to raise rates.
I once again appeal to Chairwoman Janet Yellen to restrict comments made by the Fed Presidents and let the minutes of each meeting speak for themselves. The whole thing creates unnecessary volatility to the markets and it’s not necessary in my opinion.
When the time comes, cast your vote. In the meantime you should stay silent. There is no benefit to anyone to hear each of their opinions outside the meetings,
Enjoy the rest of your day.
Disclaimer: This editorial has been prepared by Walter Pehowich of 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 and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, 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 this disclaimer.