Everyone has heard and been concerned about in the last year is INFLATION!  Ever since COVID pandemic, supply chain product outages and rising costs of all commercial and consumer goods have been a large issue.    We saw rapid inflation after the US government poured trillions in “helicopter money” to Americans and swallowed enormous national debt now robustly ticking away over $31 Trillion and the FED lowered interest rates near ZERO to re-stimulate the economy.  What happened is that the economy took off, markets recovered, and high inflation became a HUGE issue overall since 2021.  

Now today, we finally see inflation cooling off a bit. However, what does that mean for you and me in Main Street America?   the fact that the inflation data has eased off a bit and now the FEDERAL RESERVE has paused interest rate increases after 15 consecutive month of rate hikes to a cumulative rate equal to 5% this will have serious NEGATIVE impact on the Dollar, and I think it is likely that we are going to see weakness heading for the dollar index.  This means that the gold price is likely to see a serious upside!!   The FED will likely pause until July as they watch inflation numbers, but we are still at high risk for a recession with job numbers losing steam, bank failures, and high consumer debt.  If that is the case, the FED will have to lower interest rates and that is always bad in the middle of market crisis for Wall Street and good for Gold and Silver.    

In the long term, when economic and job numbers fall, the FED loosens policy and is this is bad for US Dollar value.   Most people think the FED Reserve’s policy move is too little, too late as banks are in trouble with short falls in cash or liquidity.  The US Treasury is projected to have a $1 Trillion shortfall in currency which then places the USD on a path for lower value.  Meanwhile, US debt is at a very high point, with consumer and business bankruptcies exploding which will also balloon over the summer as credit markets are very tight due to high lending rates at banks.   All this points to good market conditions for safe-haven, private asset value in physical gold and silver.