Precious metal expert Michael Ballanger breaks down the gold price roller coaster surrounding the Fed’s decision not to raise interest rates.
by Michael J. Ballanger
The Gold Report
Janet Yellen just blew all remaining semblances of credibility believed to be still present at the U.S. Federal Reserve Board.
We have all heard for the past month or so that the Fed was going to hike the Fed Funds rate at today’s meeting, the anticipation of which caused a rally in the U.S. Dollar (USD) and a surge in stocks—all while the bond market was rallying in response to weakness in the macroeconomic environment.
Well, they didn’t raise as predicted back in March because of “China weakness,” so today they didn’t hike because of “soft exports” and “vulnerabilities in the global economy” and “Brexit worries” and a host of other totally clueless hypothecations. But the bottom line is that they didn’t hike because the ensuing dollar rally would impair the collateral that underpins the massive debts owed by governments and homeowners to the banks that hold that debt.