The recent price action of precious metals may not be indicating more stimulus moves from the Federal Reserve, but high-ranking members of the central bank continue to defend and support loose monetary policies.
In late February, the Federal Open Market Committee revealed several members want the Federal Reserve to prepare for a day when it does not have to keep the economy afloat with the current quantitative easing programs. “Several participants emphasized that the Committee should be prepared to vary the pace of asset purchases, either in response to changes in the economic outlook or as its evaluation of the efficacy and costs of such purchases evolved,” the minutes read.
However, recent speeches clearly indicate that Federal Reserve intervention is here to stay for awhile. On Monday, Fed Vice Chair Janet Yellen defended easy-money practices in a speech to the National Association for Business Economics.
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