Where Does the Fed Go From Here?

Posted by on April 17th 2012 in Bailout, CFTC, Federal Reserve, General Economy, Gold, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

In an interview with The Gold Report headlined “Own gold and silver and dabble in miners,” Morgan Report contributor Chris Marchese says that March’s Fed minutes “signaled that the members are willing to be very accommodating if GDP slows down, if it doesn’t maintain a 2% inflation rate and/or unemployment starts to creep back up. Then they tried to play the metals down; they don’t like high gold or silver prices because they delegitimize the dollar.”

He argues that they’re “doing that in preparation for the next round of quantitative easing, which in my opinion will just be an extension of Operation Twist that ends in June.” And while Marchese doesn’t think “the metals will do anything spectacular until the end of the summer. At that point, if the economy is not looking good enough, I think Bernanke will do everything in his power to make Obama look good to get reelected.”

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