Investors Eagerly Awaiting Outcome of FOMC MeetingPaul-Martin Foss
This week’s Federal Open Market Committee meeting will be one of the most highly-observed in recent years, as markets look to discern whether or not the Fed will continue to raise interest rates this year. The FOMC statement is probably going to be of less importance this time around than the press conference and the summary of economic projections that will be released. Journalists will have a chance to press Fed Chairman Jay Powell on the direction of Fed monetary policy going forward, while the summary of economic projections will be scrutinized to see if it differs at all from the last one published last December.
Most market actors are looking for the Fed to halt its interest rate hikes or even to restart easing. Wall Street benefits when easy money flows, as low interest rates and trillions of dollars of money pumping into the financial system mean plenty of opportunity for making lots of money. That’s the way it’s always been for Wall Street, and the Fed has been only too willing to accommodate. And with the Fed seemingly halting its monetary tightening in the wake of stock market turbulence, professional investors hope and expect the Fed to keep the spigots of cheap money and credit flowing.
But what’s good for Wall Street (at least in the short run) isn’t always good for Main Street. And when copious amounts of easy money start flowing that results in higher prices for goods and services throughout the economy. Over the past two decades prices for food, housing, education, and medical care have grown far faster than official inflation rates have. The longer the Fed continues that easy monetary policy, the worse that disparity becomes.
That’s particularly bad for those who are retirees or living on fixed incomes. The more money is created, the higher prices climb, and the worse off retirees are. Being able to protect yourself against the ravaging effects of inflation throughout retirement is the goal of any sound retirement portfolio.
Only gold can provide that protection against inflation, serving as the ultimate source of wealth when all other currencies and financial assets lose their value. It has been trusted by investors for centuries and has helped many a person to survive when paper money becomes worthless.
Investors today can invest in gold through a gold IRA, allowing them to invest in gold while still enjoying all the same tax advantages as traditional IRA retirement accounts. They can even roll over existing retirement assets from a 401(k), IRA, TSP, or similar account, meaning that they don’t have to start their retirement saving over from scratch. If you’re worried about future inflation and your ability to maintain your current standard of living, you owe it to yourself to look into investing in gold today.