The Fed Up Fix Is In – Ep. 190

  • The price of gold continues to retreat
  • Gold was down about $12 today; it closed around $1310
  • The dollar index up again as more and more people begin to contemplate the possibility of a rate hike in either September or December
  • Or maybe even both, because the odds of a rate hike, either in September or December have now increased to about even money
  • If you go back to June, the odds were practically zero
  • What has changed in the last couple of months?
  • The only thing that has really happened is that you’ve had various Fed officials going out of their way to mention that a rate hike is still possible
  • Why would they do that?
  • Obviously, a rate hike is possible
  • Usually they are asked the question and they mention the possibility
  • If the Fed had no intention of raising interest rates, I doubt they would admit it at this juncture
  • They want people to believe that a rate hike is possible because if you admit that it’s not possible,
  • That opens a can of worms that the Fed isn’t interested in opening just yet