On June 12, 2024, Federal Reserve officials announced that the central bank had not seen enough progress in inflation to cut interest rates and projected only one rate cut this year. Critics, such as economists Mohamed El-Erian and Claudia Sahm, say these restrictive policies could lead to a recession.
“The bad outcomes here could be pretty bad…. From a risk management perspective, I have a hard time understanding the Fed’s unwillingness to cut and their ceaseless tough talk on inflation.”
—Economist Claudia Sahm
What would it take for the Federal Reserve to change course, and what could be the results of their decision to keep interest rates steady?
Click on the video link below for exclusive executive insights on this topic from Philip N. Diehl, 35th Director of the U.S. Mint and President of U.S. Money Reserve.
Related headlines from around the web:
- Fox Business: “Economy is slowing much faster than the Fed expected: Mohamed El-Erian”
- The Wall Street Journal: “Fed Projects Just One Cut This Year Despite Mild Inflation Report”
- CNBC: “Gold could rally to $3,000 over the next 12–18 months, according to Bank of America”
Enhance your portfolio with precious metals today.
Widespread market forces like central bank demand, geopolitical tensions, and monetary policy may continue to drive gold prices higher. Gold has also historically been used as a hedge against economic uncertainty and market turbulence. Now may be the perfect time to add wealth protection to your portfolio in the form of physical gold.
Watch U.S. Money Reserve’s “Market Insider” each week for more economic insights. Nothing herein should be considered as portfolio or retirement advice as U.S. Money Reserve (“USMR”) cannot and does not offer financial advice. Clients should consult a financial advisor for specific advice. This commentary is provided by USMR for informational purposes only and is provided on an “as is” basis without any warranty of any kind, whether express or implied. Your use of the information provided in this commentary is entirely at your own risk. In no event will USMR be held liable for any indirect, special, incidental, or consequential damages arising from the use of information contained in this commentary.
