Fed Raises Rates, but It Remains to Be Seen If Rate Hikes Will Continue…

March 20 2017

The Fed increased the official rate in the US from 0.75 to 1 percent. The central bank appears keen to keep its promise of December last year. At the time, the Federal Open Market Committee (FOMC) implied that the official rate would be raised three times in the course of 2017. Is this unexpected rate hike in March a reason for sceptics as yours truly to expect two additional rate hikes? In my view, we should still call such expectations seriously into question.

First about that rate hike

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Edin Mujagic

A Response to the Dutch Central Bank: Fearful Citizens Should Not Buy Gold

March 15 2017

I admit. My response to a recent interview is overdue. Last year, the Dutch financial newspaper Financieel Dagblad (FD) published an interview with Aerdt Houben, director of Financial Markets at the Dutch central bank, De Nederlandsche Bank (DNB), discussing that beautiful shiny precious metal we are so interested in: gold. Of course, there has been enough commotion about DNB and its gold reserves. DNB repatriated, for instance, in utmost secrecy over €4 billion euro worth of gold from New

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Olav Dirkmaat

The Election Circus Crosses the Eurozone

March 8 2017

In less than two weeks, the Dutch will go to the ballot box. Just a month later, on April 23, the French will follow suit. They will have to vote in a first round who their new president will be to, later, on May 7, during the rather likely second round make their final decision on who will become

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Edin Mujagic

The Odds of a Rate Hike Just Went Up

March 1 2017

The odds of the Federal Reserve increasing interest rates in March have just spiked. Whether the Fed decides to raise interest rates either at the next FOMC-meeting or afterwards, market interest rates are experiencing a rapid increase. The Fed suddenly became the naked emperor. While market rates are on the rise, the members of the Fed’s interest rate committee must pretend that they now, out of a sudden, do have valid reasons to increase the Fed rate: higher inflation, lower unemployment, etc. But the true motive of a rate hike is much more sobering: the Fed’s decision makers do not want to hike rates, but are forced by rapidly increasing market rates.

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Olav Dirkmaat

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