The biggest news for the markets right now concerns the Fed and inflation.
For the last 20 years, the Fed has argued that it is targeting an inflation rate of 2%.
Everyone knows that the real rate of inflation is well above this level. But the Fed is the Fed. And as the primary director of the financial system, the Fed’s target rate of inflation is used as a baseline for all major portfolio managers.
Which is why the following story is of MAJOR import:
Powell set to deliver ‘profoundly consequential’ speech, changing how the Fed views inflation
He is expected to outline what could be the central bank’s most active efforts ever to spur inflation back to a healthy level.
“Average inflation” targeting means the Fed will allow inflation to run higher than normal for a period of time.
Source: CNBC.
In simple terms, the Fed is broadcasting that it is going to unleash inflation in a big way.
How big?
The media is presenting Jerome Powell as the antithesis of former Fed Chair Paul Volcker. Volcker is famous for stopping the runaway inflation of the late 1970s/early 1980s when interest rates rose to 19%.
And Jerome Powell is being presented as the OPPOSITE of Volcker. This means Powell is signaling that he is perfectly happy to let the inflation genie out of the lamp.
This is going to unleash an inflationary storm that will send inflation hedges like gold and silver (and their miners) THROUGH THE ROOF.
Indeed, gold has already exploded higher to over $2,000 per ounce. Imagine where it and other inflation hedges will go by the time the Fed has REALLY turned on the printing presses.
The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.
We are making just 100 copies available to the public.
There are just 29 left.
To pick up yours, swing by:
www.phoenixcapitalmarketing.com/inflationstorm.html
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research