The Fed doesn’t have many responsibilities. Controlling inflation is right up there at numero uno. Yet, not only did it fail to see the inflation it was causing…and then misdiagnose it as ‘transitory’…now, it has no idea of how to get the cat back in the bag.
We promised to explain the real reason for the US’s meddling in the affairs of the Eurasian steppes. This will require more space than usual, but we will just continue connecting the dots until we get a better picture.
As expected, the Fed raised its inflation-adjusted key rate from around MINUS 7.7% to around MINUS 7.5%. And the plan is to keep raising it until it reaches MINUS 5% by the end of next year.
Sanctions against Russia are leading to the collapse of the ruble. So what should we think about Russia’s plan to build up its gold reserves?
Commodities have been rallying quite a bit lately. Most notably, nickel soared due to the sanctions the West put on Russian natural resources.
Jerome Powell and his fellow Fed heads are hunkered down for their big meeting today and tomorrow. The Fed has to decide what to do.
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