Gold & Silver Prices Moved Slightly Higher As Fed Blames Everything But Itself And The US Government For Inflation

The Fed has just decided, uh-huh, to hike rates by a whole 0.75% and blame the “elevated” inflation on the Zombie Apocalypse, still, as well as…

(by Half Dollar) The Fed has just concluded its most recent 2-day FOMC meeting.

Here’s the Fed’s statement, posted in its entirety (bold added for emphasis and commentary):

Recent indicators of spending and production have softened. Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.

Russia’s war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 2-1/4 to 2-1/2 percent and anticipates that ongoing increases in the target range will be appropriate. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve’s Balance Sheet that were issued in May. The Committee is strongly committed to returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lael Brainard; James Bullard; Susan M. Collins; Lisa D. Cook; Esther L. George; Philip N. Jefferson; Loretta J. Mester; and Christopher J. Waller.

Apparently, the Zombie Apocalypse is still a thing.

Fed Chair Jerome Powell will be holding a “press” “conference” at 2:30 p.m. EST, which can be viewed right here:

People like to say, “his words can move markets”, but it’s not really his words that are doing the moving.

Regardless, most Armchair Quarterbacks will be looking for clues and signs of the so-called “Fed Pivot”.

Gold & silver prices were moved slightly higher when the report hit the tape:

Although that’s not saying much.

Just like the Fed.

Starve the Beast…

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