Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By silveristhenew (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Did The Fed Just Hint At Monster Inflation?

% of readers think this story is Fact. Add your two cents.


We won’t bore you with yet another article about the recent rate hike by the Federal Reserve. This move was widely expected, as the Fed members had been hinting this would happen for several months now. Additionally, the new ‘hints’ about an additional two rate hikes later this year also didn’t surprise the market as we believe this was already priced in. The slight hike in the Federal Funds Rate estimate for 2019 to 3% (from 2.9%) didn’t see to worry the markets as the indices were all sent higher on the back of the FOMC meeting.

The ‘dot plot’ also caught our attention. Even though Yellen specifically announced the Fed was aiming for at least three rate hikes, the dot plot chart shows there are three members who are still expecting a maximum of two rate hikes. Surprising, considering the most recent interest rate decision was almost unanimous.

Source: Bloomberg

It made us scratch our heads as there didn’t seem to be any logical explanation at all, but then the Royal Bank of Canada came up with a theory which makes a lot of sense. Fed member Lockhart (Fed Atlanta- resigned at the end of February and could not possibly have submitted a new rate hike expectation. According to RBC, this could mean his (temporary?) replacement just submitted the same position as the previous time the Fed Atlanta was indicating, before Bostic was appointed as the new President and CEO of Fed Atlanta.

A logical explanation, but this wasn’t the only ‘interesting’ thing after the FOMC meeting. In the very first paragraph after officially announcing the rate hike, we could read this:

“ The Committee will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal.”

The logical explanation here would be the interpretation the Fed wouldn’t allow the inflation rate to run at a higher percentage than 2% for a prolonged period of time, but the statement could also be read as the Fed explicity warning of a much higher inflation rate than originally anticipated. We know the market has always been prone to overshooting, either on the positive or negative side of the equation. We don’t think we have ever heard the Fed talk about ‘symmetric’ inflation, but as the FOMC members are leaking more intel than the Exson Valdez spilled oil, this position will undoubtedly be clarified in a ‘coincidental’ interview or public speech.

Source: Federal Reserve

Looking at the expectations of the Fed board members, they are practically still confirming ‘money’ is losing its value pretty fast. Whilst the median expected inflation rate is pretty close to 2%, an additional two-step rate hike would still put the ‘real’ interest rate below zero. And that’s what counts; your money is worth less day after day.

>>> Read our Guide to Gold and protect yourself against inflation!

Secular Investor offers a fresh look at investing. We analyze long lasting cycles, coupled with a collection of strategic investments and concrete tips for different types of assets. The methods and strategies are transformed into the Gold & Silver Report and the Commodity Report.


Source: http://silveristhenew.com/2017/03/19/did-the-fed-just-hint-at-monster-inflation/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.


LION'S MANE PRODUCT


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules


Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.


Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.