CNBC/Elliot Smith/10-16-2022
“The U.S. Federal Reserve, European Central Bank, Bank of England and Swiss National Bank all raised interest rates by 50 basis points this week, in line with expectations, but markets are honing in on their shifting tones. Markets reacted negatively after the Fed on Wednesday hiked its benchmark rate by 50 basis points to its highest level in 15 years. This marked a slowdown from the previous four meetings, at which the central bank implemented 75 basis point hikes.”
USAGOLD note: We shall see how this plays out in the gold market. If Friday’s markets are an indicator, we could be at a turning point. Rising rates, stagnation and stubborn inflation, in our view,point to a stagflationary trend. During the 1970s – the last time stagflation was the prime concern – gold and silver glittered. On Friday, as the news on where central banks were headed settled in, stocks slipped in the United States while gold and silver rose – a departure from recent trends. One day does not make a trend, but under the circumstances, we thought it worth noting.
