FLASH GAGE – Richmond Fed Pres Comments on Sept. Rate Hike

Flash Gage - News Headlines that Impact precious metals as they happen.

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.

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