“Clearly, people that are familiar with the market would say, ‘what do they know that nobody else doesn’t?’” asks Will Rhind, founder and CEO of GraniteShares, as news circulates that BlackRock’s spot bitcoin exchange-traded fund application may likely get approved by the U.S. Securities and Exchange Commission. He claims that the saga has been ongoing for years and it is unclear why many large institutions such as Fidelity and Invesco are following suit now. Additionally, Rhind claims that investors should be level-headed about Federal Reserve Chairman Jerome Powell’s comments on raising interest rates. “We have to be a little bit careful at the same time… that’s why the response from the market so far has been a little bit measured.” He concludes that the U.S. economy is strong and that signals a “dampening demand for [precious] metals.”

#investing #federalreserve #gold #dollar #inflation #jeromepowell

⭐️ Join Daniela Cambone’s exclusive community ➡️

➡️ Follow us on Facebook:
➡️ Follow us on Twitter:
➡️ Follow us on Instagram:
➡️ Follow us on LinkedIn:

Chapter stamps:
00:00 Powell’s comments on raising rates
3:18 Gold price
4:53 Economy
5:24 Bitcoin
7:13 BlackRock bitcoin ETF
8:40 Outlook for bitcoin
9:14 FedNow
10:29 Precious metals sector…(read more)

LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

In recent weeks, the world has been abuzz with discussions surrounding Jerome Powell’s latest announcement regarding inflation. The Federal Reserve Chairman has doubled down on his stance that rising prices are indeed temporary, and that the central bank will continue to support the economy until the desired level of inflation is achieved. However, as with any policy decision, there are winners and losers in this scenario.

Let’s start with the winners. Businesses, especially those in sectors hit hardest by the pandemic, stand to benefit from a sustained period of inflation. Rising prices can lead to increased profits, as companies can charge more for their goods and services. This is particularly true for industries like retail, hospitality, and travel, which have been struggling to recover from the devastating effects of the COVID-19 crisis. Additionally, stock market investors may also come out on top, as inflation can push up asset prices, potentially leading to higher returns on investments.

On the other hand, there are clear losers in this situation too. Consumers bear the brunt of inflation as they witness a decrease in their purchasing power. When prices rise, individuals must shell out more money for their everyday essentials, leaving less discretionary income for other expenses. This becomes more pronounced for low-income households, who already struggle to make ends meet. Rising inflation can exacerbate income inequality and make it harder for individuals to improve their financial situation.

Savers also lose out when inflation rears its head. The value of money diminishes over time as buying power decreases. For those who have diligently saved their hard-earned money in low-yield savings accounts or fixed income investments, the real value of their savings erodes due to inflation. This can lead to negative real returns, a situation where the interest earned on investments is outpaced by the rising prices of goods and services.

Additionally, long-term investors might face some challenges. Rising inflation may prompt central banks to tighten monetary policy, such as raising interest rates, to curb further price hikes. Higher interest rates can influence bond prices, resulting in losses for investors holding fixed-income assets. It can also lead to increased borrowing costs, negatively impacting businesses and their investment plans.

In summary, Powell’s commitment to seeing inflation rise to meet the central bank’s target may have winners and losers. While businesses and stock market investors may reap rewards from a period of inflation, consumers, particularly those with lower incomes, may struggle with decreased purchasing power. Savers and long-term investors may also face challenges due to diminishing value and potential policy changes. It remains to be seen how this policy choice will play out in the long run and how individuals and industries will adapt to the changing economic landscape.