Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. In this column, JWR also covers hedges, derivatives, and various obscura. This column emphasizes JWR’s “tangibles heavy” investing strategy and contrarian perspective. Today, we examine the Federal Reserve’s September 18th interest rate cut.
Precious Metals:
Gold price rallies to all-time high shy of $2,600 as Fed cuts 50 bps.
Update: Spot gold was at $2,594.70 per Troy ounce on Thursday, in Asia. And silver jumped to $31.20. Platinum was also playing catch-up, rising to $1,004.50. (Up 1.4% in just a few hours of trading.) I expect to see some profit-taking, but the bull market is clearly picking up speed. – JWR
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Over at Gold-Eagle.com: UBS On Gold: It’s Not The End Of The Rally Yet…
Economy & Finance:
Fed Goes Big: Cuts Rates by Half Percentage Point. JWR’s Comments: The timing of the Fed’s rate cut move, just as early absentee voting in the presidential election is beginning, has a pungent fishy smell. It is quite clear that they want to boost the economy — including stock prices, car sales, and home sales. And then Komrade Harris will get a corresponding boost at the polls. As with every other dynamic in the socio-political-economic realm, we should ask: Cui bono?
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‘The party is over’ as Tupperware files for bankruptcy after years of troubles.
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The unemployment measure you’ve never heard is flashing a recession warning.
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H.L. sent us this, at Breitbart: Car Insurance up a Whopping 55% in Biden-Harris Admin’s America.
Commodities:
Futures Rip To New All Time Highs After Fed Rate Cut, As Yields, Commodities Jump. An excerpt:
“In a move that Donald Trump called either political intervention or confirmation the US economy is doing much worse than indicated, the Fed cut rates by 50 basis points, a big move designed to preserve the strength of the US economy amid mounting risks to the labor market which has been flooded with illegal aliens. Jerome Powell said taking the step now would help to limit the chance of a full-blown downturn, while being careful to avoid committing to this as the new pace for rate reductions. Michelle Bowman dissented, voting for a 25-basis-point cut, the first time a Fed governor has done that since 2005.”
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Interest in Electric Vehicles Is Nosediving. (A hat tip to D.S.V. for the link.)
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Oil prices rise after Fed delivers big interest-rate cut.
Inflation/Deflation Watch:
Poll: Vast Majority of Texans Say Food Costs Rising Faster Than Income.
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Argentina Measures 4.2% Inflation, Down from 25.5% When Javier Milei Took Office.
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What does a Fed rate cut mean for the economy and consumers?
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From the NPR leftists: The Federal Reserve starts cutting interest rates in a big moment for the economy.
Forex & Cryptos:
Bullish bets steady on Asian currencies as Fed easing bets soften dollar.
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At Currency Thoughts: How the Dollar Performed in Previous Downward Cycles of the Fed’s benchmark Interest Rate.
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Hot Forecast for EUR/USD on September 19, 2024. A quote:
“Today, the focus shifts to the Bank of England, which will likely set the tone for further actions by key central banks. The British central bank is expected to keep its interest rates unchanged. In the context of the Fed starting to lower its rates, such a step by the BoE would provide momentum for the pound to rise. This, in turn, would also pull up the euro via the dollar index.
The EUR/USD pair, driven by a strong flow of news and information, shows increased volatility. During this period, the price almost reached the 1.1200 mark. The upward sentiment remains undeniable despite the previous trading day’s closing near the opening level.”
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Jumbo Fed rate cut sparks global market rally.
Tangibles Investing:
Used Car Price Trends for September 2024.
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6 Reasons Car Prices Will Plummet This Fall.
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Wholesale Used-Vehicle Prices Decrease in First Half of September.
Provisos:
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
News Tips:
Please send your economics and investing news tips to JWR. (Either via e-mail or via our Contact form.) These are often especially relevant because they come from folks who closely watch specific markets. If you spot any news that would be of interest to SurvivalBlog readers, then please send it in. News items from local news outlets that are missed by the news wire services are especially appreciated. Thanks!