With the US Treasury and increasing control over the Fed to back him, he can now throw massive amounts of money into taking control of winners as he sees fit.
The purchasing power of the Federal Reserve Note against real assets, especially gold and silver that cannot be printed or debased, continues to be on the chopping block.
Investors and the media interpreted those remarks as a signal that “the race is on”. Someone said that Powell’s remarks “opened the door to a possible interest rate cut”.
If the outcome is a sharp economic slowdown or recession, Treasury yields will fall significantly, and that would propel gold to $4,000+ and silver to $60+.
The XAU -- a popular index fund containing publicly traded companies mining for both gold and silver -- began a run higher 18 months ago after going nowhere for the decade before.
