With a full U.S. economic recovery out of reach until the coronavirus pandemic is brought to heel, the Federal Reserve will use its “full range of tools” to cushion households and businesses, Fed Chair Jerome Powell told lawmakers on Wednesday.
Under the latest guidelines, the Fed said it will buy, on the secondary market, individual bonds that have remaining maturities of five years or less. Those purchases will go along with the ETFs the Fed already has been buying, which are balanced toward investment-grade indexes but also include some junk bond funds that track debt which had been investment grade before the crisis but had been downgraded after.
Silver and platinum are witnessing material buying the last several months, as represented by a number of technical indicators.
Federal Reserve money printing has reached record levels in 2020, and Congress is looking into a 4th round of stimulus to offset the coronavirus recession.
We may be close to a global monetary reset for the U.S. dollar, akin to the end of the WW2 Bretton Woods system during the early 1970s.
The lagging monetary/industrial metals may perform smartly into…
The Federal Reserve voted Wednesday to keep benchmark short-term rates near zero.
In addition to the rates move, the Fed said it would keep buying bonds, targeting $80 billion a month in Treasurys and $40 billion in mortgage-backed securities.
On the economy, the Fed sees GDP tumbling 6.5% in 2020 but bouncing back to a 5% gain in 2021.
Recently, silver has made a significant move – up about 20 percent in the last month – and trading just below USD$18 per ounce at press time. Simultaneously, investment in physical silver, in the form of silver bullion coins and bars, is expected to climb for a third consecutive year,
Meanwhile, silver has far greater industrial applications, so benefited from the improving economic optimism, Flynn said. Further, the metal this spring was widely considered undervalued relative to gold, so likely drew some investment buying in its role as “poor man’s gold,” as it is often called.