Crypto And Gold Vs Wall Street: Is Now The Best Time To Invest?

Is inflation really happening? Depending on the source you turn to, some will say yes. Take a look at gasoline prices and the rising cost of lumber. Even the gold price today is resuming its steady climb. Although Fed Chair Jerome Powell continues to assert that inflation is not yet a problem, it does not seem that major companies are keeping calm. From Wells Fargo to BlackRock, it appears that companies are setting up defenses for their own interests. So, what does this all mean for the average investor? Can assets like crypto and gold help you?

Gold Price weekly rise July 2021

Inflation Today

On Wednesday, the US Labor Department reported that its PPI rose 1% in June, a stronger than expected rise. Meanwhile, economists predicted only a 0.6% increase. Producer prices rose 7.3% over the year, the biggest recorded advance in nearly eleven years.

Core producer prices also increased 1% in June, increasing from 0.7% in May. But, economists previously forecast a mere 0.5% rise in wholesale inflation. Producer prices are important to look at because companies usually pass off rising costs to consumers.

Powell continues to downplay the growth of inflation, telling Congress that the central bank will continue its rather dovish monetary stance. In his opening remarks, he indicated that inflation may continue to naturally rise through the summer. However, Powell mandated this is a temporary threat that will moderate later.

“Inflation has increased notably and will likely remain elevated in coming months before moderating. Inflation is being temporarily boosted by base effects, as the sharp pandemic-related price declines from last spring drop out of the 12-month calculation. In addition, strong demand in sectors where production bottlenecks or other supply constraints have limited production has led to especially rapid price increases for some goods and services, which should partially reverse as the effects of the bottlenecks unwind.”

The central bank discussed tightening interest rates and pulling back on its monthly bond purchase program. But, Powell mandates that the Fed will not shift policies yet. Meanwhile, gold rises, and Social Security cost-of-living is being bumped up 6.1%, the biggest jump since the 1980s. So why is Powell not taking a more hawkish stance to fight against inflation? It’s possibly because the Fed is seeing a different picture.

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Disclaimer: This article is not meant to serve as professional economic advice. Any action you take upon the information from this article and website is strictly at your own risk.

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Almoni33 2 months ago Member's comment

total clutter

Alexis Renault 2 months ago Member's comment

How so?

Almoni33 2 months ago Member's comment

obviously - no trading plans or graphical analysis, just dust in the eyes and fog and muddy water to go with it