Today the Federal Reserve announced that they would leave interest rates steady once again at 5.5%, the longest pace of steady rates since 2021. This news was not much of a surprise to Wall Street insiders and economists, predicting for a while that a rate cut was not in the cards today, but now confidence that the Feds will cut rates moving forward is most likely not going to happen.
But one of the more important things to come out of this latest Fed meeting was when they revealed that more ‘easy money’ is on the way starting in June. The Feds have been in the midst of a quantitative tightening cycle, but have now revealed they plan to return to quantitative easing – more money printing, an expansion of the money supply.
The Feds wrote in a press statement:
In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.
In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. Beginning in June, the Committee will slow the pace of decline of its securities holdings by reducing the monthly redemption cap on Treasury securities from $60 billion to $25 billion. The Committee will maintain the monthly redemption cap on agency debt and agency mortgage‑backed securities at $35 billion and will reinvest any principal payments in excess of this cap into Treasury securities. The Committee is strongly committed to returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
In his speech, Powell indicated that rate hikes are not likely, but indicated that it will take longer to reach their 2% goal.
We … do not expect it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is moving sustainably toward 2%. So far this year, the data have not given us that greater confidence,” he continued. “In particular, […] readings on inflation have come in above expectations.
It is likely that gaining such greater confidence will take longer than previously expected. We are prepared to maintain the current target range for the federal funds rate as long as appropriate.
The sole factor that might cause an earlier rate hike, he explained, would be “an unexpected weakening in the labor market.”
AUTHOR COMMENTARY
As with all of Powell’s speeches, it’s all just whitewashed nonsense, rhetoric, and lies. For example, stagnant growth and rising inflation is called “stagflation,” but Powell plays dumb and says he does not know people are calling this environment affected by stagflation.
I was around for stagflation. It was brutal. Ten percent unemployment. High single-digit inflation. And very slow growth. Right now, we have 3% growth. Which is pretty solid growth, I would say, by any measure. And we have inflation running under 3%. So, I don’t really understand where concerns about stagflation are coming from.
He said
For the longest time, I was confident that the Feds would cut rates, most likely by June/July. Now it appears that will most likely not happen and rate cuts will probably wait till after the November election. However, I still have a suspicion that as more banks start to collapse this summer, this may provide the Feds with an alibi to start cutting. But this is all speculation on my end. We’ll see what happens. The data’s fake and baked anyways.
Proverbs 22:7 The rich ruleth over the poor, and the borrower is servant to the lender.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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We are free-falling off the cliff no matter if the Fed raises rates, lowers rates, or stands still. Buy gold bullion while it’s still affordable. Don’t wait until the price of it gets so high, you can’t afford it and the window, thus, closes. You’ll be like a third monkey on steroids beating the doors to get into the Ark, to no avail. You’ve been warned.
Proverbs 11:4 Riches profit not in the day of wrath: but righteousness delivereth from death.
I can’t afford it even if I wanted to. I’m not against it, but let’s not act like it’s some savior. Besides, it’s all going digital and tokenized, so it’s kind of irrelevant in the not-so distant future. I’ll being doing some reports on this in the future, with corroborating scripture, that proves gold is not this impervious hedge of protection it’s made out to be.
Gold/silver certainly ***will be*** the monetary savior when the SHTF. (When I say ‘savior,’ this is not to be confused with God Almighty and His Son/our Savior, Jesus Christ.) With all due respect, do your homework on gold/silver – your future depends on it. Also, gold/silver has ***always*** been a hedge of protection for I***thousands of years***. True … when the dollar crashes, everything will be digital. The masses will receive their universal basic oncome via CBDG and given their marching orders on what to buy, what not to buy, when to buy, etc., and if the powers to be don’t like something you said or did, they’ll flip your CBDG account switch off faster than Biden’s machine can print worthless fiat. I will *not* be dependent on CBDG!!! Yes, gold costs much more than silver, but if gold doesn’t fit into your budget at this time, for your sake, check into silver (super-affordable now) and start stacking. Do your research on this and you’ll quickly find that *everything* is solidly aligned for both to literally soar and-how in price … starting this year. Don’t wait until the window closes, it becomes unaffordable, and you end up being one of millions who’ll be a slave to CBDG. I wish you/your family the best.
I tend to agree with Jacob that Gold n Silver may not be the solution, though I am keeping options open. But I must say this: I have been leaning on and praying to God, for discernment from the Holy Spirit with in me. I have been consistently hesitant to pull the trigger to purchase any. Like Jacob, our financial means would not allow to have much anyway. Again. We have been putting total faith and Prayer to God for direction, and purchasing extra dry food / stock on a weekly basis. The money we have is God’s, so we lean on him with how to utilize it. SIDE NOTE** I am TIRED of Powell and the mainstream media telling us inflation is at 3%!!! LIE LIE!!!
Truflation says on aggregate it’s 25.4% right now. The numbers the Feds and government give are all fake.
https://truflation.com/marketplace/truflation-us-aggregated
Proverbs 16:16 How much better is it to get wisdom than gold! and to get understanding rather to be chosen than silver!
Don’t sweat it if you can’t get gold and silver. I’m not against of course, but let’s not pretend like it’s the savior like so many of these gold proponents love to act like it is.
https://winepressnews.com/2024/04/06/the-wisest-thing-you-can-do-with-your-money-growing-knowledge-and-gaining-skills/
Don’t twist things up concerning Scripture, Jacob. Of course, it’s **by far better** to have Godly wisdom that He graced upon us versus a warehouse of gold/silver bullion, but He also expects us to use our head and prepare … that means food, medicine, shelter, money, etc. For those who have extra fiat laying around at the bank, it’s financial suicide to keep hanging onto it vs. buying gold/silver. The day’s coming when we’ll all wake up one day to find our bank/stock accounts are closed, and the fiat in them is worth zero. That ***won’t*** be the case for those who were prudent enough to buy gold/silver.
Gold/silver proponents KNOW precious metals equal wealth. History has proven that over and over and over and over and over and over and over and over and over and over and over. Once you do your research (and it doesn’t take long), you’ll understand everything the proponents have been trying to tell the masses. It’s not in your best financial interest to keep your head buried in the sand. YOU’VE BEEN WARNED.
Genesis 47:14 And Joseph gathered up all the money that was found in the land of Egypt, and in the land of Canaan, for the corn which they bought: and Joseph brought the money into Pharaoh’s house. [15] And when money failed in the land of Egypt, and in the land of Canaan, all the Egyptians came unto Joseph, and said, Give us bread: for why should we die in thy presence? for the money faileth. [16] And Joseph said, Give your cattle; and I will give you for your cattle, if money fail.
Read the whole chapter and the story echoes what’s transpiring right now and is to come. Gold and silver was the money of the day (Gen 44:8, 23:16, 2 Kings 23:35, etc.); and the money, gold and silver, FAILED. Something similar occurred in the waning days of Rome.
https://mises.org/mises-daily/inflation-and-fall-roman-empire
I am NOT anti-gold and silver, as I have even recommended readers buy some in some contexts if they can; but that does not mean that gold and silver is fool proof and never goes bad. I just gave you a scriptural proof of just one event from “thousands” of years ago. I am well-researched on the issue. Think about what you’ve told me: if CBDC (including digital ID and tokenization) is the system moving forward, then what good will gold and silver be when the only legal “currency” are digits on a screen on a blockchain? If anything, bartering will prove to be more advantageous and having land, animals, food and water, ammo, etc. Besides, I’m priced out as is and prices will only go from up here as the dollar dies. I’m just going to trust the Lord and his righteousness and let the chips fall where they may.
2 Corinthians 1:8 For we would not, brethren, have you ignorant of our trouble which came to us in Asia, that we were pressed out of measure, above strength, insomuch that we despaired even of life: [9] But we had the sentence of death in ourselves, that we should not trust in ourselves, but in God which raiseth the dead: [10] Who delivered us from so great a death, and doth deliver: in whom we trust that he will yet deliver us; [11] Ye also helping together by prayer for us, that for the gift bestowed upon us by the means of many persons thanks may be given by many on our behalf.
1 Timothy 6:17 Charge them that are rich in this world, that they be not highminded, nor trust in uncertain riches, but in the living God, who giveth us richly all things to enjoy; [18] That they do good, that they be rich in good works, ready to distribute, willing to communicate; [19] Laying up in store for themselves a good foundation against the time to come, that they may lay hold on eternal life.
Ummm . . . things are WAY worse now than the ‘then’ he spoke of. I was around then, myself.
Sigh … printing more worthless fiat’s bad enough. Just wait until the Fed lowers the interest rate, which they’ll have to do at some point soon for a variety of reasons — that’s when things will go from really bad to beyond terrifying.
I buy gold by the gram, though I checked out the fraction of an ounce, and silver mainly by the ounce.