The equity markets are bouncing along support on the lower bound as they wait to hear what Chairman Yellen has to say about the Fed’s perspective tomorrow and what else is said over the next few days at Jackson Hole.
As for gold and silver, they went down in honor of the option expiration on the Comex for the most part this week, and today is just the anti-climax.
Traders claim to be ‘confused’ about what the Fed is up to. So for their benefit and yours, here is a brief cheatsheet.
The Fed is very close to the zero bound on their key interest rates. They have been here for a very long time, with most of it proving fruitless at best, and increasing asset price inflation and income inequality for the most part. And that goes double for any of their QE programs which just inflate specific financial assets even more directly.