← Back to All Videos

“E-Ticket” Ride For The U.S. Economy

Blog Jun 17, 2013

In a recent interview, Federal Reserve Bank’s former Chief Economist, David Stockton shared an interesting perspective in regards to the U.S. economy.

The Fed presently purchases $85 billion in bonds every month and thereby injects currency into the economy. Stockton looks for the Fed to start drawing down its monetary stimulus program (whatever the current iteration of QE we are in) later this year either in September or December.

The furious bond buying aided the U.S. in reducing interest rates to a near decade low and although the rate percentages have grown in response to the idea of Fed tapering, Stockton is convinced rates will climb higher yet.

“I wouldn’t expect necessarily for it to be very sharp,” remarked Stockton. “If the Fed is good at its job of communicating, it advances intentions. But I would expect a bumpy ride here for the second half of the year.”

Anyone care to hazard a guess what that might do to the price of gold?

“I think most recently, it’s been a less-than-ideal performance by the Fed,” Stockton observed. “I think the Fed needs to be clearer about its outlook for QE and, specifically, what kind of factors they will be looking at before they actually begin tapering.”

Mr. Stockton acknowledges that the Fed could change policy at any time, he states that to revisit a policy of monetary expansion after tapering would be much more difficult to do. “Once they begin the tapering, the bar for actually increasing the amount of purchases again would be pretty high.”

A modest rise in interest rates, in Stockton’s view, would not harm the economy, but he advised “I would be cautious at this point. This is still an economy that has failed to achieve to take off a lot. And, we’re looking at a global economy that is looking increasingly soft, especially Asia and China.”

At ITM Trading, Inc. we think he might be right. We look forward to reviewing the precious metal alternatives with you at your convenience by calling us at 1 888 OWN GOLD (1 888 696 4653).

Secure Your Future With Gold & Silver

Access expert advice and transparent pricing—backed by decades of leadership in retirement protection.
Schedule Strategy Call

Sources & References In This Article

Similar Posts

Blog Jun 2, 2025

$100 Billion ‘Ghost Field’ Discovery Could Power America for 30,000 Years

Learn More
Blog May 19, 2025

ECB Sounds Alarm on Gold Surge – Fears Will Trigger Financial Collapse

Learn More
Blog May 14, 2025

The Economic ‘Storm’ Will Get Worse: Is the U.S. Headed for a Radical Reset?

Learn More
Blog May 5, 2025

Will U.S. Basel III Unleash Gold? BIS’ New Reset Plan

Learn More
Blog Apr 30, 2025

China ‘In a Panic’ to Start War, The U.S. is Preparing : Gordon Chang

Learn More
Blog Apr 29, 2025

O’Leary: Mark Carney Faces ‘Hell of a Time’ Fixing Trudeau’s Economy, Sees Early Election

Learn More
Blog Apr 28, 2025

No Gold? You’re Doomed In The Reset War

Learn More
Blog Apr 25, 2025

Fed’s Desperate Bid to Stop Gold Price – Why it Will Backfire

Learn More