The Fed is Making History
Posted onBlanchard Fed Report: September 2020
Not only for its unprecedented 0% interest rate and money printing policies, but because it is creating one of the most positive environments for gold that we have seen in modern history.
Today, we saw another Federal Reserve meeting. And, yes, another reason to buy gold and silver.
The Fed kept its benchmark interest rate at zero percent today.
That was expected.
Yet, the more we listen to Fed officials, the more it becomes clear that the central bank is intent on leaving its easy money policies in place for a very long time.
If you were ever hoping to get a return on a CD account at a bank in the next few years, you can forget that idea.
In fact, at today’s meeting, the Fed came right out and said it expects to keep interest rates at 0% through the end of 2023.
That is worth repeating.
The Fed is not even thinking about raising interest rates for four years.
For savers in CDs or bank accounts, that’s not good news.
For precious metals investors, that is excellent news. It’s no surprise that gold climbed higher after Fed officials met today.
Gold and silver thrive and climb in zero interest rate environments and the Fed is guaranteeing that until the end of 2023.
What’s more? The Fed stated today that inflation is “on track to moderately exceed” the Fed’s target rate of 2% “for some time.”
Zero percent interest rates and rising inflation.
That is a classic textbook recipe for higher gold prices ahead. Never before in history has the Fed given the green light for gold prices to grow exponentially for a period of several years.
As the central bank continues to devalue fiat currency with its money printing policies, the stage is set for a breakout in gold back to $2,000 and beyond.
Gold investors may need to be patient.
The market had an incredible run throughout 2020 thus far. But, rest assured, the Fed is creating one of the most bullish backdrops for gold prices we’ve seen in modern history. Major Wall Street banks are forecasting gold at $3,000. It will be here sooner than you think.
You can take that to the vault.
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