Special Edition: Something Has to Be Done at the Fed

One man’s opinion:

Something has to be done at the Fed. On Tuesday, Kansas City President Ester George said, “There has been NO substantial shift in the outlook that would justify pausing further gradual rate hikes.”

Gold and silver sells off on her comments.

Wednesday New York Fed President William Dudley said, “The tightening of financial conditions that have taken place since the FED began raising short–term interest rates in mid-December is a matter of considerable concern to the FED.” He also indicated that a weakening of the Global economy accompanied by further appreciation in an already strong dollar could have “significant consequences” for the U. S. economy.

Gold and silver rallied off his comments, the dollar index sells off.

What is reported in their comments have a direct effect on all the markets, from equities to oil, to the dollar and commodities. How could two people that sat at the same table and collectively agreed on what direction the FED will take at that meeting come out a month later and BE ALLOWED TO EXPRESS TWO COMPLETELY OPPOSITE VIEWS ON THE FED POLICY GOING FORWARD?

We need and demand orderly markets in order to attract investment. These crazy comments bring uncertainties to all markets and chase folks from investing in them.

It’s time for the Fed Chair to stand up to these folks and tell them to keep their comments to themselves and let the FED minutes collectively speak for them.

By the way, since Dudley’s comments the dollar has weakened substantially creating a strong rally the gold price.

Have a wonderful Thursday.

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.