US Fed plays safe

The U.S. Federal Reserve kept interest rates unchanged on Thursday in a bow to worries about the global economy, financial market volatility and sluggish inflation at home, but left open the possibility of a modest policy tightening later this year. In what amounted to a tactical retreat, Fed Chair Janet Yellen said developments in a tightly linked global economy had in effect forced the U.S. central bank’s hand. The world according to Alan Greenspan is a pretty loopy place. According to him, government spending is extremely dangerous and for this he was trolled relentlessly on social media. However now with Janet Yellen in charge and with Obama as president the U.S. Fed is slightly more taciturn and not so garrulous. 

This probably explains the extremely conservative decision to avoid a hike in the rates altogether. Most people are aware that there is a government body that acts as the guardian of the economy - an economic sentinel who implements policies designed to keep the country operating smoothly. Unfortunately, most investors do not understand how or why the government involves itself in the economy.  In the U.S., the answer lies in the role of the Federal Reserve, or only, the Fed. The Fed is the gatekeeper of the U.S. economy. It is the bank of the U.S. government and, as such, it regulates the nation’s financial institutions. The Fed watches over the world’s largest economy and is, therefore, one of the most powerful <g data-gr-id="50">organisations</g> on earth. It goes without saying that whenever the economy of the United States of America coughs the global economic system goes into a respiratory distress.

Given China’s recent devaluation of the Renminbi recently it is not surprising that the world is looking towards the all-important meeting of the United States Federal Reserve. The policy maneuver,  if it had been implemented, would include allowing tax breaks that encouraged capital spending to expire at the end of 2014 and endless budget battles in Congress. None of those problems is being addressed by near-zero interest rates. Dow closes up triple digits as stocks rally more than 1 percent ahead of Fed. Markets are poised for a relief rally even if the Federal Reserve hikes interest rates for the first time in nine years, and it is extremely likely that the US central bank will do it, to call the bluff of scaremongers.

The Fort Knox is a United States Army post in Kentucky south of Louisville and north of Elizabeth town. The 109,000-acre base covers parts of Bullitt, Hardin, and Meade counties. It currently holds the Army Human Resources Center of Excellence to include the Army Human Resources Command, United States Army Cadet Command, and the United States Army Accessions Command. The United States Bullion Depository, often known as Fort Knox, is a fortified vault building located within the United States Army post of Fort Knox, Kentucky, used to store a large portion of the country’s official gold reserves and occasionally other precious items belonging or entrusted to the federal government. 

The exact contents of the United States Bullion Depository are unknown as there has not been an approved full audit since the early 1930s, before the Depository’s construction. It is estimated to have roughly 3 percent of all the gold ever refined throughout human history. Nobody knows what happens inside the Fort Knox or the Federal Reserve. This statement has never been truer. The Fort Knox is a United States Army post in Kentucky south of Louisville and north of Elizabeth town. The 109,000-acre base covers parts of Bullitt, Hardin, and Meade counties. It currently holds the Army Human Resources Center of Excellence to include the Army Human Resources Command, United States Army Cadet Command, and the United States Army Accessions Command. For 60 years, the United States Bullion Depository, often known as Fort Knox, is a fortified vault building located within the United States Army post of Fort Knox, Kentucky, used to store a large portion of United States official gold reserves and occasionally other precious items belonging or entrusted to the federal government. 

The exact contents of the United States Bullion Depository are unknown as there has not been an approved full audit since the early 1930s, before the Depository’s construction. It is estimated to have roughly 3 percent of all the gold ever refined throughout human history. Nobody knows what happens inside the Fort Knox or the Federal Reserve. This statement has never been truer. What the Fed needs to do is redefine its conception of normalizing policy. <g data-gr-id="42">Normal</g> monetary policy is pretty simple — higher interest rates when needed to fight inflation, and conservative decisions which go hand in hand.