This is why people in the US should not expect more Fed rate cuts anytime soon.
November 27 (King World News) – Peter Boockvar: The Fed in times of financial condition stress, such as in Q4 2018, have used that as reason to ease policy. Now that financial conditions are as easy as can be, they should at least show some policy symmetry and wait until January to next consider a rate cut as I expressed yesterday.
Financial Conditions (LOWER = EASIER) Don’t Justify Any Fed Rate Cuts
Yes, parts of the economy are challenged by the restrictiveness of rates, such as small and medium sized businesses, anyone in commercial real estate and certainly anyone with a credit card or wanting to buy a big ticket item like a car or home. But, what we’ve seen since September is that the Fed can only control one part of the curve and where you borrow along that curve will determine whether you get Fed help or not. The long end borrower of course has gotten no help with 75 bps of fed fund rate cuts.
Gold & Silver: Expect Wild Trading!
To listen to James Turk discuss what to expect next for gold, silver and the mining and exploration space CLICK HERE OR ON THE IMAGE BELOW.
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