Discover more from The Occasional Speculator
Fed Power to Suppress Interest Rates Weakened by 2021 Inflation
The efficacy of the US government (part of the Fed’s QE) using massive sell orders to dramatically suppress certain commodities (such as precious metals and the interest rate on Treasuries) is weakening this year- check out gold
…and note that the gold price per ounce having dropped in two days by $125- from $1800 to $1675- took only yesterday and today to recover by $75 (most of the loss) closing at over $1750!
I think this illustrates that such manipulation is less effective as a result of the enormous surge in inflation in 2021 and the increased media focus on the credibility of the Fed.
This gives me hope that my short position on the June 2022 Eurodollar (currently at 99.79) begins to pay off sooner rather than later.