Phil Carr
The Gold & Silver Club
The most highly antipated FOMC Meeting of 2021 and quite possibly the most important monetary policy decision in Jay Powell’s career is finally here – with inflation accelerating and the job market tightening.
Last week, the Consumer Price Index, which the Fed uses as its preferred measure of Inflation, jumped a sizzling 5% in May from a year earlier – to its highest level since 2008. Meanwhile, annual core CPI rose 3.8% year over year, which is its sharpest increase since 1992.
The inflation reading represented the biggest CPI gain since the 5.3% increase in August 2008, just before the global financial crisis sent the U.S. spiralling into the worst recession since the Great Depression – and Oil prices skyrocketing to $150 a barrel.
There's no doubt that the Fed is in a tough position. On the one hand, higher inflation calls for the tapering of its historic quantitative easing program. However, on the other hand, the unemployment rate does not warrant a change in the monetary policy stance.
To taper or not to taper – that is the big question facing the Fed and Wednesday’s decision will inevitably set the stage for how precious metals and commodity prices will trade throughout the rest of this month.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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