2/20/08 Pre-Bell Update: Oh no...Inflation creeps into CPI number today. Fed will have balancing act! Will have to cut rates anyway and hope increased growth will offset inflation. Gonna scare market...Headed to 11,500 and below sooner than later. Metals will sell off today due to profit taking and fear of no rate cut, now, due to inflation fears. SU feels Fed will still feel pressure to cut, and worry about inflation later. (No bottom yet! I repeat, no bottom yet!)
2 PM UPDATE -- MINUTES FROM JANUARY '08 FED MEETING: Based on the minutes from the last three meetings the Fed had regarding rate cuts vs inflation, it appears as though there will be a focus on the short term need for further rate cuts to help stimulate growth -- and if inflation becomes a major issue, they will reverse the cuts. (To paraphrase.) This would seem to favor gold prices rising higher than existing record high levels this year.
Updates, news wires and 24 hour LIVE gold and metals charts and more at StrategyUpdate.com.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment