Fed govs talking rate hike!!!

MGLICKER

Getting a bit hawkish for a change. Wow...even a nod to inflation.

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"""(Reuters) - A top U.S. central banker said on Friday the Federal Reserve may be "closer than a lot of people think" to raising interest rates given the firmer recent inflation and labor data.

Charles Plosser, president of the Philadelphia Fed, told Bloomberg TV the Fed is now closer than it has been to reaching its objectives, no matter how they are measured, adding: "We should not be keeping interest rates at zero until we reach all our objectives.""""

PerryHall

How will a rate hike effect PM prices?

cohodk

That will get the stock market moving higher.

rawteam1

<< <i>How will a rate hike effect PM prices? >>


straight to Antarctica...

MGLICKER

<< <i>How will a rate hike effect PM prices? >>



Don't know. Most likely an initial drop, but I believe that 7% plus inflation will haunt us for a while and metals will do well as the fed will stay behind the curve going forward.

jmski52

A rate hike? I didn't know that the economy was getting overheated.

piecesofme

c'mon jmski52...it's been simmering for quite awhile and a pot of water can only boil so long before it all eventually evaporates, then you walk into the room and wonder why it's so humid and the windows are fogged over.
The economy is propped up enough now (all with smokescreens) to drop a shoe or two, if nothing else, just to see what'll happen. A new chapter in the demise of America may begin after all.

Barndog

<< <i>A rate hike? I didn't know that the economy was getting overheated. >>



just watch more CNBC

derryb

Watch what they do, not what they say. There words are often "tools" to sway sentiment and perception.

VanHalen

<< <i>A rate hike? I didn't know that the economy was getting overheated. >>



A smoke screen to get a reaction. We won't see a 1% Fed Funds in the next 2 years.

jmski52

There's going to be some more gnashing of teeth late this Fall when the healthcare tax hits most major companies. Something's going to give, and I suspect that it will translate into lower margins, higher insurance premiums, and more pressure on middle class consumers, who contrary to the opinion of Pelosi are the main drivers of our economy (not food stamp recipients).

MGLICKER

<< <i>

<< <i>A rate hike? I didn't know that the economy was getting overheated. >>



A smoke screen to get a reaction. We won't see a 1% Fed Funds in the next 2 years. >>



Good post. They seem to be a bit nervous about equity and bond bubbles. Never easy to let a little bit of air out of a balloon.

roadrunner

<< <i>

<< <i>How will a rate hike effect PM prices? >>


straight to Antarctica... >>



Rates were doubled from 1977 to 1980. Gold didn't seem to mind. It's much more than just rates any ways.

ricko

Just wait and watch.... hold on to your stacks, this could be interesting. Cheers, RickO

jmski52

Rates were doubled from 1977 to 1980. Gold didn't seem to mind. It's much more than just rates any ways.

Correct. Prices were rising when Nixon decreed wage & price controls in 1971. By 1972 the plan fell apart and by 1977 inflation was clearly embedded in the cost structure of everything. By 1979 the speculation in metals was off & running.

I figure that we're in the 1976 "Whip Inflation Now" stage. Okay everybody, get your buttons.

derryb

<< <i>Rates were doubled from 1977 to 1980. Gold didn't seem to mind. It's much more than just rates any ways.

Correct. Prices were rising when Nixon decreed wage & price controls in 1971. By 1972 the plan fell apart and by 1977 inflation was clearly embedded in the cost structure of everything. By 1979 the speculation in metals was off & running.

I figure that we're in the 1976 "Whip Inflation Now" stage. Okay everybody, get your buttons. >>


Metals took off mainly because of the currency debasement that occurred with the removal of gold backed US dollar during this period. Keep your eyes on the dollar, it determines the future of metal prices. Note the recent "deflationary" period and it's affect on metal prices.

MGLICKER

"""Bullard told Bloomberg that he predicted inflation of 2.4 percent at the end of 2015, “well above” the Fed’s 2 percent target."""""



Wonder if his wife ever goes to the grocery store or if they have kids in college or get the car repaired or go to the doctor?

jmski52

Wonder if his wife ever goes to the grocery store or if they have kids in college or get the car repaired or go to the doctor?

Doubtful. Central bankers are a protected species and live in a bubble. They do get to look at the numbers though, but numbers are pretty meaningless when you get free money on demand from the Fed.

Metals took off mainly because of the currency debasement that occurred with the removal of gold backed US dollar during this period. Keep your eyes on the dollar, it determines the future of metal prices. Note the recent "deflationary" period and it's affect on metal prices.

Also because the costs of the Vietnam War and Great Society spending programs had all come full circle right about then. Sorta like now.