Great! U.S. Not Causing “Upward” Or “Elevated” Inflation, Just That U & R Thing And That C Thing, Gold & Silver Tread Water As Fed “Hikes” Rates

The “most important Fed meeting, ever” has just concluded…

(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):

Overall economic activity appears to have picked up after edging down in the first quarter. 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 energy prices, and broader price pressures.

The invasion of Ukraine by Russia is causing tremendous human and economic hardship. The invasion and related events are creating additional upward pressure on inflation and are weighing on global economic activity. In addition, COVID-related lockdowns in China are likely to exacerbate supply chain disruptions. 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 1‑1/2 to 1-3/4 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; Michelle W. Bowman; Lael Brainard; James Bullard; Lisa D. Cook; Patrick Harker; Philip N. Jefferson; Loretta J. Mester; and Christopher J. Waller. Voting against this action was Esther L. George, who preferred at this meeting to raise the target range for the federal funds rate by 0.5 percentage point to 1-1/4 percent to 1-1/2 percent. Patrick Harker voted as an alternate member at this meeting.

So for the second month in a row, that U& R thing is still a thing, apparently.

Additionally, that C thing is also still a thing, apparently.

Good thing there is nothing the US has done, or is doing, that has contributed to the “upward” and/or “elevated” inflation.

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

The Armchair Quarterbacks have been tailgating for over a week for this one!

Gold & silver have been treading water:

Not that mother nature is the only thing gold & silver must contend with, of course.


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