CNBC/Jeff Cox/8-4-2020
“To achieve that goal, officials would pledge not to raise interest rates until both the inflation and employment targets are hit. With inflation now closer to 1% and the jobless rate higher than it’s been since the Great Depression,the likelihood is that the Fed could need years to hit its targets.”
USAGOLD note: We’ve spent a lot of time talking about the negative real rate of return over the past several weeks as an inducement for higher gold prices. Now, the Fed is signaling Wall Street that it will do everything in its power to insure there will not be a positive real rate of return on yield instruments for a long time to come.
