In this week’s Off The Cuff podcast, Chris and Axel Merk discuss:
- Decoding The Fed’s Latest Commentary
- Cuts are coming = expect more bad news on the economy
- The Uncertainty Principle
- By reacting, the Fed may be creating the conditions it wants to avoid
- Gold Looking Good
- Lower real rates will push the gold price higher
- How Low Will Interest Rates Go?
- Could the US really go negative?
This week both the ECB and the Federal Reserve gave the market the soothing words it wanted to hear: any weakness will be met with rate cuts. And perhaps revived asset purchase programs.
Is this really wise with interest rates already so low and a global recession unfolding? And how low, really, is the Fed prepared to go with US interest rates? Axel, who maintains a dialog with Fed insiders, does his best in this week’s podcast to decode what Mario Draghi and Jerome Powell are planning:
It’s going to be very, very interesting to watch. And over the next decade or so I think we’ll see some very, very interesting things. And I would not just assume that everything that’s priced into the markets shows how things are going to pan out to be.
We are hell-bent on lowering rates right now. And the question is how we set ourselves for a course of rate cut after rate cut after rate cut on a slowing economy.
And my own view on this is that the consumer is strong. But businesses
by adam-taggart-2 
