The Fed “Skips”

Now What? [The Daily Reckoning] June 14, 2023 [WEBSITE]( | [UNSUBSCRIBE]( The Fed “Skips” - Today is a day of great celebration… - The Fed “skips”… - The good news about high interest rates… [There is MASSIVE change happening within our company.]( And I want you to hear about this – from me – otherwise this new policy could blindside you. This has gone into effect immeditaly, so I want you to understand exactly what it will mean for you. So please, watch this video for my full announcement. [Click Here Now]( Annapolis, Maryland [Brian Maher] BRIAN MAHER Dear Reader, Thanksgiving Day? You may have it. Christmas Day? You may have it. New Year’s Day? Again, you may have it. Today is June 14 — Flag Day. It superexceeds them all. Only Independence Day bulks larger in our pulsing patriotic heart. And that heart — or what passes for a heart — glories today in celebration. After Independence Day, only Constitution Day rivals Flag Day in our hierarchy of holy days. Again, the rest you may have. We refer not to the gold medal-positioned flag on recent display at the White House. [image 1] We refer instead to the silver- and bronze-positioned flags, the junior flags — the flags of the United States. May they bask forever in glory! May Old Glory bask forever in glory! Yet even on this high and solemn day… we must tend to profane and worldly concerns. For example, the monetary system of the United States… Would the Fed “Pause” — or “Skip”? The Federal Reserve had something to say today. It said that it was holding its target rate even. No rate increase, no rate decrease, that is. The Federal Reserve has chosen to stand in place. This was widely expected — the bulking majority of market soothsayers had forecast this inaction. But they cannot quite discern the future. It is obscured by fog. Is today's standing-still a “pause” before actual rate decreases? Or is today’s standing-still a mere “skip” before additional rate increases? That is, did the Federal Reserve merely delay additional rate increases? Recall, though somewhat subdued, inflation remains up and doing. It is active across several fronts. The Federal Reserve must therefore keep the prospect of additional rate increases up its shirtsleeve. Explains The Wall Street Journal: Federal Reserve officials’ concerns about stubbornly high inflation could lead them to signal that they are prepared to lift interest rates again this year even if they hold them steady on Wednesday. [Do NOT Ignore This Message Hidden In You $1 Bill…]( [Click here for more...]( On the face of this $1 dollar bill is a set of instructions for EVERYONE in America, which is legally binding… And is the main thing that gives your cash its value. But here’s the thing… This message represents a direct threat to Joe Biden’s plans for your money… Which could put the value of every dollar you own in SERIOUS jeopardy. Can you spot it? [Click Here To Learn The Truth About The U.S. Dollar]( Sean Ring, Psychic Morning Reckoning editor Sean Ring has performed an excellent crystal-gazing. He divined today’s “skip.” Yet he also served Mr. Powell a sage morsel of advice: From commentary this morning: I’m sure he’s going for choice B, the skip. But he must execute this step delicately but firmly. Powell must say something like, “We’re giving the market a month to catch its breath, then we’re coming back in full force. So be careful. You’ve got six weeks to sort yourselves out. Until then, I’ll be quiet. But we’re going to hike in July, so price it in.” Then the belief he’ll hike again will be credible. We’re not out of the woods with inflation, either on the consumer or asset sides. He knows that… It’s a delicate balancing act. But in the end, the Fed will attempt to skip. Did the chairman take aboard Mr. Ring’s counsel? Did he “execute this step delicately but firmly”? He did not. His mummeries were delicate — yet his mummeries were not firm. They were constituted not of granite but of goo: The skip — I shouldn’t call it a skip — the decision… I would almost say that the conditions that we need to see in place to get inflation down are coming into place… The things are in place that we need to see. But the process of that actually working on inflation is going to take some time. One Cheer From Wall Street The stock market took an instant swoon upon today’s announcement — the Dow Jones Industrial Average plunged some 300 gobsmacked points Why? Explains CNBC: The Federal Reserve paused its hiking campaign in June, but forecast it will raise interest rates as high as 5.6% before 2023 is over, according to the central bank’s projections released on Wednesday. The Fed on Wednesday kept the key borrowing rate in a target range of 5–5.25%. But it was its projections, the so-called dot-plot, that moved markets, sending them lower as the central bank projected two more increases. That is, Wall Street was hot for a “pause” — yet got a “skip.” “We are pleased you did not raise rates,” stocks informed Mr. Powell — “but now you dangle before us two additional rate hikes? What gives, buster?” Later in the day the stock market underwent a stabilization of sorts… in the manner that a handrail may stabilize a man following a buckling of his knees. [New LIVE Demo Video STUNS Crypto Investors]( In this short 3:28 video… Crypto genius James Altucher reveals his most shocking crypto secret yet… A little-known secret that’s delivered over $1,170 in FREE crypto income per month. If you AREN’T using this affordable little device… You’re missing one of the best, easiest ways to earn real cash with cryptos. [Watch This Short Video Now]( Powell’s Handrail What “handrail” did the stock market seize? None other than Mr. Powell himself. Stocks regained the vertical during his post-announcement talk. That was when he insinuated he would consider his impact on the stock market. That is, Wall Street got a sly wink from him. And it was partially soothed by it. Yet stocks remained partially wobbled the remainder of the afternoon. The Dow Jones Industrial Average ended trading down 233 points. The S&P 500 actually scratched out a 3.5-point gain. The Nasdaq Composite, meantime, recovered sufficient footing to post a 53-point advance. Yet we spot the silver edge framing the gray cloud… The Good News It is a commonplace of knowledge that the Federal Reserve requires an elevated interest rate in order to combat recession — 4% or higher This constitutes “dry powder” the Federal Reserve can draw upon to bombard the foe. We hazard that recession lurks just beyond the horizon. We fear it will come barreling in before long. Might the Federal Reserve’s monomaniacal pursuit of higher interest rates… that it undertook only after the emergence of a severe inflation… an inflation that the Federal Reserve itself helped turn loose… account at least partially for this recession? Well friends, perhaps it might. It has likely helped fabricate the enemy it must soon confront. Yet here is the sunny-sided and silver-lined news: In this war Mr. Powell and mates will have loads of dry powder at their disposal. Let us never again be accused of pessimism! Regards, [Brian Maher] Brian Maher Managing Editor, The Daily Reckoning [feedback@dailyreckoning.com.](mailto:feedback@dailyreckoning.com) Editor’s note: Have you ever wondered where I put my own money in a crisis? Jim Rickards is [prepared to show you where he puts his.]( And he’s inviting you to join him. Jim says that it’s completely outside the stock market. And that it has nothing to do with real estate or anything like that. But Jim believes that if you get in with him today…you could potentially make [up to 71X inside the next two years.]( That’s right, 71X. What’s this all about? [Click here now for details.]( Thank you for reading The Daily Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:feedback@dailyreckoning.com) [Brian Maher] [Brian Maher]( is the Daily Reckoning's Managing Editor. Before signing on to Agora Financial, he was an independent researcher and writer who covered economics, politics and international affairs. His work has appeared in the Asia Times and other news outlets around the world. He holds a Master's degree in Defense & Strategic Studies. [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your The Daily Reckoning e-mail subscription and associated external offers sent from The Daily Reckoning, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@dailyreckoning.com. This address is for feedback only. For questions about your account or to speak with customer service, [contact us here]( or call (844)-731-0984. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized financial advice. We allow the editors of our publications to recommend securities that they own themselves. However, our policy prohibits editors from exiting a personal trade while the recommendation to subscribers is open. In no circumstance may an editor sell a security before subscribers have a fair opportunity to exit. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. All other employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. The Daily Reckoning is committed to protecting and respecting your privacy. We do not rent or share your email address. Please read our [Privacy Statement.]( If you are having trouble receiving your The Daily Reckoning subscription, you can ensure its arrival in your mailbox by [whitelisting The Daily Reckoning.](