Fed In Complete Disarray & Investors Must Brace Themselves
June 19, 2013
Today one of the top economists in the world told King World News that the Federal Reserve is now in complete disarray and investors must brace themselves for more turmoil. Michael Pento, who heads Pento Portfolio Strategies, also said that despite a long bout of weakness investors need to own gold, silver and the mining shares in order to protect themselves from the coming storm.
Pento: “We all knew that the Fed suffers from acute schizophrenia, but let’s take a look at what their statement really said today. Of course there was no change in the amount of bond purchases. They are still doing $85 billion every month.
But the Fed downgraded the outlook for inflation. The outlook was for 1% inflation for the totality of 2013. At the Fed’s last meeting in March, the outlook was for 1.5% inflation. So they lowered their outlook for inflation which is half of their mandate.
They then said, ‘The risks to rising unemployment have diminished.’ They mad that bold claim even though the unemployment rate was up last month….