Fed Continues To Extend And Pretend On Rate Hikes – Ep.115

Fed Continues To Extend And Pretend On Rate Hikes – Ep.115


* I am recording this podcast from New Orleans, where I am attending the Investment Conference
* Today, I am going to talk predominantly is the FOMC statement that came out yesterday following the conclusion of their 2-day October meeting
* It was largely expected that the Fed would not raise interest rates in October and that's exactly what happened
* I predicted this a long time ago
* What is amazing is that, as a result of this announcement, more people expect the Fed to raise rates in December
* Going into this announcement, the dollar was on the defensive, silver was up about .50, gold was up $15.00
* It sure looked like people were expecting a more dovish tone from the Fed
* After all, a lot of bad economic news has come out since the September meeting
* When the Fed statement was released, there was no such change in language
* This now leads people to believe that the statement was hawkish
* They still don't understand the game: Nothing has changed.
* the Fed has to pretend that a rate hike is right around the corner in order to pretend that the recovery is real
* They can't admit that the economy is weak because they want to take credit for saving the economy
* They have to keep pretending, and they have to keep making up excuses
* Steve Leesman was asking why we need emergency rates when the emergency is over
* The emergency is not over, as far as the Fed is concerned because there is no real recovery
* If we had a legitimate recovery, of course the Fed could raise rates
* Thus the game: they continue to talk as if they might raise rates, and the markets buy it
* As soon as their statement came out, gold tanked, it ended up down about $10, silver gave up most of its gains, and the dollar was broadly higher
* If you actually read the statement, there is nothing hawkish about it
* It is basically the same as the September
* The only thing that stands out is an absence of concern
* The FOMC is not worried about all the bad news
* "In determining whether it will be appropriate to raise the target range at its next meeting, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term. "
* None of that is going to happen. The labor market is deteriorated - the labor force participation rate is still shrinking
* These are metrics Janet Yellen needs to see improve
* The Fed knows that these minutes will be misinterpreted
* They want to preserve the illusion that a rate hike is possible so they can preserve the illusion that this is a legitimate recovery and not a gigantic bubble
* But, what's going to happen when the Fed doesn't raise rates and ends up launching QE4 the Fed is going to have zero credibility
* The U.S. economy is in worse shape now than it was leading into the 2008 financial crisis
* Now everybody is talking about how important the jobs number will be - the Fed has not raised rates in 7 years. How can one jobs report make the difference?
* Meanwhile we've had months of stronger jobs numbers and the Fed did not raise rates
* I think the truth is the Fed has decided not to raise rates
* But they still need to maintain the perception that they might raise rates and that'... Our Sponsors: * Check out FRE and use my code LISTEN20 for a great deal: https://frepouch.com * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

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Visit https://indeed.com/peter to start hiring now.Join my Locals community to get The Pete Schiff Show ad-free! Plus get access to special live reports and Q&As. Visit https://schiffradio.com/premium to become a member.Invest like me: https://schiffradio.com/investSIGN UP FOR MY FREE NEWSLETTER: https://www.europac.comSchiff Gold News: http://www.schiffgold.com/newsBook Store: https://schiffradio.com/booksFollow Peter Schiff on Twitter: http://www.twitter.com/peterschiffFollow Peter Schiff on Instagram: https://instagram.com/peterschiffFollow Peter Schiff on TikTok: https://www.tiktok.com/@peterschiffofficialFollow Peter Schiff on Facebook: http://www.facebook.com/peterschiffOur Sponsors:* Check out FRE and use my code LISTEN20 for a great deal: https://frepouch.com* Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD* Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.comPrivacy & Opt-Out: https://redcircle.com/privacy

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Cut your wireless bill to $15/month at https://mintmobile.com/gold. $45 upfront payment required. For new customers on the first 3 month plan only.Register for The 2024 MoneyShow in Miami, FL (April 10-12): https://www.miamisymposium.com/speakers/4532d84bf93311d3a5dd00104b96e7b5/peter-schiff/?scode=062042Join Peter on the Annual Investor Summit at Sea! Get the details and reserve your spot at https://InvestorSummitAtSea.comJoin my Locals community to get The Pete Schiff Show ad-free! Plus get access to special live reports and Q&As. Visit https://schiffradio.com/premium to become a member.Invest like me: https://schiffradio.com/investSIGN UP FOR MY FREE NEWSLETTER: https://www.europac.comSchiff Gold News: http://www.schiffgold.com/newsBook Store: https://schiffradio.com/booksFollow Peter Schiff on Twitter: http://www.twitter.com/peterschiffFollow Peter Schiff on Instagram: https://instagram.com/peterschiffFollow Peter Schiff on TikTok: https://www.tiktok.com/@peterschiffofficialFollow Peter Schiff on Facebook: http://www.facebook.com/peterschiffOur Sponsors:* Check out FRE and use my code LISTEN20 for a great deal: https://frepouch.com* Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD* Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.comPrivacy & Opt-Out: https://redcircle.com/privacy

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