Federal Reserve Intervention Is In Full Force Now

Investment Research Dynamics

The Fed is in full market intervention mode right now.  It is desperate to keep the S&P 500 above 2,000 and gold below $1300.  Despite the intensified threats to hike interest rates at the June FOMC meeting, the stock market continues to spike up and gold is being pushed down.  It’s blatant manipulation.  Interestingly, research shows  – LINK – that Fed interest rate hike cycles are bullish for gold.

Futhermore, the non-seasonally adjusted, non-manipulated economic data continues toshow the economy has slipped into an “unofficial recession.”  Certainly a rate hike accelerate the problem reflected in this graph (click to enlarge) to the right, which shows the year over year rate of change in the number of delinquencies for commercial and industrial banks.

In other words, we can expect the rate business bankruptcies and liquidations to accelerate going forward.  I guess if Yellen wants to get tagged with that legacy then the Fed should go ahead an push up rates another 25 basis points in June.