Fed expected to keep rates unchanged as Chair Powell pivots back to economics

We're getting a retracement on USD pairs tomorrow and then USD will continue its decline. However, the possibility of something going wrong in February is very, very high. If not February then March.

Supreme Court will likely rule against Trump which will be a sign that things are coming to an end for the US economy. Not because of the Supreme Court decision. US economy has been dying for years and the time of reckoning is upon us and has nothing to do with tariffs. Which is exactly why Trump keeps nailing the point that if Supreme Court rules against tariffs that US economy will go down in flames. He's setting it up and will blame the Supreme Court for US economy going down. He will probably also blame the Fed that they were too late with cutting rates which is ridiculous since the Fed should be hiking rates despite recession to return the purchasing power back to the USD. This is a currency crisis before anything else. This is why Gold is above 5000$. Anyone that is rich and sane enough is aware that the Fed will do nothing to help the USD and current administration is even worse, as they want even weaker USD than it already is.
Is Trump to blame for a recession? Only in the view that he demands even weaker USD. The Fed is entirely to blame for recession. The Fed has a printing press not Donald Trump or Joe Biden. The Fed created inflation. President has literally no authority over the Fed whatsoever. None, zero, nada! Central banks are the cancer that have been plauging the world ever since they were created. It all really started the moment the US went off the Gold standard in 1971. This granted the Fed the ability to print like there's no tomorrow, creating constant bubbles enriching the rich and taking away from the middle class and poor. Since then, the average wage started to lag behind the average price of home and goods.

Liquidity is completely drained. It's an accident waiting to happen.

We also know the path of interest rate is towards 0% and potentially negative. We also have a problem in Japan where yields on the debt are surging higher uncontrollably.

Crisis is imminent. The only question is how the markets will respond to full blown QE by the Fed and the rest of the central banks. If the trust in currencies collapses, it'll result in yields surging so high up that it'll cause a meltdown of such epic proportions in the stock market people will not believe their eyes.

And no, stocks will not go up despite the currency depreciating rapidly because of the situation in the debt market.

What will however go to the stratosphere is the price of Gold and the rest of the precious metals.


Unless the Fed mentions rate hikes, these articles about the Fed should be removed as they are COMPLETELY IRRELEVANT! Whether they will cut by 25bps or hold is utterly irrelevant. Also, if they are about to cut, they'll let you know 17 years in advance anyway.

Mr. Powell will carry out his responsibilities with professionalism as he always does, regardless of what the draft dodger Trump, the market manipulator and Wharton’s pride, attempts to undermine the Fed's autonomy. Mr. Powell will not waver, no matter what the world's troublesome bully does. To a man such Mr Powell Trump is just a nuisance.