PRE-FOMC: The Fed Has To Follow Through With Tough Action – Axel Merk
from Kitco News Kitco News speaks with Axel Merk ahead of the much anticipated Federal Open Market Committee meeting, which is set to conclude Wednesday afternoon, to see how he expects the markets to react. “Everybody knows what’s going to happen but nobody knows how the market is going to react,” he says. According to Axel, it doesn’t matter whether the Fed raises rates in the summer or the fall, what really matters is forward guidance. “The Fed has to follow through with a tough action,” he says. “They cannot just do this by words all the time.” Looking to gold, Axel remains bullish on the metal in the longer term because he says the global economy cannot sustain positive real interest rates. “In the short term, it depends on how the market interprets the news,” he adds.