The Federal Open Market Committee has announced a doubling in the pace of asset tapering on Wednesday.
The Dot Plots indicate that there will be an average of three rate hikes in 2022, three more in 2023, and two in 2024, all in increments of 25 basis points.
Gary Wagner, editor of TheGoldForecast.com discusses with David Lin, anchor for Kitco News, the impact that monetary policy next year will have on financial markets.
“I think that the Fed got it wrong. They underestimated the pace at which inflationary pressures would grow and how persistent they would be. Now that they’re acknowledging that we have persistent inflation, and taking out the word ‘transitory’, they are in my mind chasing inflation. In other words, they’re reacting to the inflationary level rather than being proactive about it. That to me, is not what the Federal Reserve is supposed to do,” Wagner said.
Wagner projects that gold will outperform silver in 2022.
For gold and silver’s price levels to look out for, watch the video above.
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