Well no surprise, as was expected, the Federal Reserve decided to keep interest rates at record lows between 0.00-0.25 bps. The Fed has also decided to extend their dollar swap line program until at least March of 2021. This is in addition to the extension of their alphabet soup of emergency facilities that are now set to expire by the end of December 2020. When asked this afternoon by a reporter about when the Fed may begin increasing interest rates, Jay Powell, Chairman of the Federal Reserve, responded that he isn’t even thinking about thinking about raising interest rates. This has been a consistent answer as the Fed has cornered themselves by these various policies. If the Fed was unable to raise rates during 2018 and to “normalize” its balance sheet, (supposedly when the economy was strong), and the markets threw a tantrum and sold off some 20% in the Q4 of 2018, then how will the Fed be able to do it this time? Especially with their balance sheet nearly double where it was back in 2018. Recall that rates got to about 2.5% in 2018 and the economy and/or markets couldn’t tolerate it – hence the market sell-off. So presumably, if and when the Fed attempts to raise rates, we’ll be looking at 1 to 1.5%, maybe even less, that will have the same effect whereby the markets won’t be able to withstand such “high” rates. This is so laughable and yet so tragic at the same time. Be on the lookout for inflation, because it is coming – in fact, it’s already here.
In some other news, former VP Joe Biden is expected to announce his VP pick during the first week of August. This is one the biggest decisions that any Presidential contender has to make during their campaign and so we can expect quite a bit of news coverage on this topic. What we do know is that it will be a woman, as Biden has already made this commitment. Some of the top picks may be Senators Kamala Harris and Elizabeth Warren, along with former Obama Administration official and National Security Advisor, Susan Rice. This news event will take the campaign on both sides to the next level. There’s only a few months to go before election day and if 2020 continues in the same way, then that amounts to a lifetime between now and 3 November. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Gold #Debt #Bailouts #USA #BananaRepublic #EndTheFed #Depression #Recession #Silver #Protests #Liberty