Gary Wagner: Watch This Key Shift for Clues on When Gold Will Take Off

TL;DR

Inflation numbers remain close to expectations, showing a slight reduction but not a significant decline. The economy appears to be strong despite rate hikes, leading to hopes of a soft landing or a less severe recession. The Federal Reserve may pause after the upcoming rate hike in March to assess the impact on the economy.

Transcript

thank you I'm Charlotte McLeod with the investing News Network and here today with me is Gary Wagner he's executive producer at the goldforecast.com and he's also a regular contributor to Kitco news thank you so much for joining me online today it's great to see you thank you for having me and a pleasure to work with you again it's been about a yea... Read More

Key Insights

• 🙂 The latest CPI data shows a slight reduction in inflation but not a significant decline.
• 😨 The strong jobs report indicates a robust economy, reducing fears of a severe recession.
• ☠️ The Federal Reserve may pause after the upcoming rate hike to evaluate the impact on the economy.
• 🌱 The administration's cooperation and long-term plan are crucial in solving the economic problems.
• ⛓️ Supply chain issues have largely been resolved and are not currently affecting inflation.
• 🍵 The Federal Reserve's previous mistakes in handling inflation have contributed to the current situation.
• 😮 Gold's performance has been affected by rising interest rates and a focus on inflation rather than the potential for higher prices.

Questions & Answers

Q: What were the key points from the latest CPI data?

The latest CPI data showed inflation numbers close to expectations, with a 5% increase month over month. However, it was the biggest increase since June 2022, indicating that inflation is not significantly reducing.

Q: How does the strong jobs report impact the economy?

The strong jobs report, with over 500,000 jobs added compared to an expectation of 288,000, indicates that the economy is still running strong. This helps alleviate fears of a severe recession.

Q: Will the Federal Reserve pause after the rate hike in March?

It is highly likely that the Federal Reserve will pause after the rate hike in March to assess the lag effect of previous rate hikes on the economy. This will allow them to evaluate the impact and make more informed decisions.

Q: What is the role of the administration in solving economic problems?

The administration needs to work together with the Federal Reserve to effectively solve the economic problems. The national debt and government spending are key factors that need to be addressed to reach desired conclusions.

Summary & Key Takeaways

• Inflation numbers came in close to expectations, indicating a 5% increase month over month, but not showing a significant reduction in inflation. The economy remains strong, as evidenced by the strong jobs report and the fear of rate hikes causing a recession is reduced.

• The Federal Reserve may pause after the upcoming rate hike in March to assess the lag effect of previous rate hikes on the economy. The administration's cooperation and long-term plan are crucial in solving the economic problems.

• Supply chain issues are not currently affecting inflation, as they have been largely resolved. The Federal Reserve's earlier mistakes in handling inflation and delaying rate hikes have contributed to the current situation.