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Is there any doubt we will continue on a path of stimulus, resulting in higher commodity prices?

*The Wall Street Journal, by Jon Hilsenrath, July 24, 2012

”Federal Reserve officials, impatient with the economy’s sluggish growth and high unemployment, are moving closer to taking new steps to spur activity and hiring.

Federal Reserve officials, impatient with the economy’s disappointing performance, are moving closer to taking new actions to spur growth and employment if they don’t see evidence soon that activity is picking up on its own.  Jon Hilsenrath has details on The News Hub.

Since their June policy meeting, officials have made clear — in interviews, speeches and testimony to Congress — that they find the current state of the economy unacceptable.  Many officials appear increasingly inclined to move unless they see evidence soon that activity is picking up on its own.

Amid the recent wave of disappointing economic news, conversation inside the Fed has turned more intensely toward the questions of how and when to move.  Central bank officials could take new steps at their meeting next week, July 31 and Aug. 1, though they might wait until their September meeting to accumulate more information on the pace of growth and job gains before deciding whether to act.

Stocks Pare Losses on News

Stocks are bouncing off session lows in the final trading hour on the news that Fed officials are moving closer to taking new actions if the labor market and economic growth don’t pick up soon.

Fed officials could take some actions in combination or one after another. Fed Chairman Ben Bernanke, in testimony to Congress last week, listed several options under consideration, including a new program of buying mortgage-backed or Treasury securities, new commitments to keep short-term interest rates near zero beyond 2014 or an effort to push already-low benchmark short-term interest rates even lower.

Determined to keep trying to get the economy going without causing inflation, the Fed is exploring other novel measures.  One idea mentioned by Mr. Bernanke in his testimony would be to use a facility the Fed calls its discount window to provide cheap credit directly to banks that make new business or consumer loans.”


*This information is solely a highlight of the opinion of a third-party publication and is incomplete.  Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

Monex Bullion Investor