Powell says low interest rates could last for years

(CNBC) Interest rates are likely to stay low for years as the economy fights its way back from the coronavirus pandemic, Federal Reserve Chairman Jerome Powell said in remarks published Friday afternoon.

“We think that the economy’s going to need low interest rates, which support economic activity, for an extended period of time,” Powell told NPR in an interview after the nonfarm payrolls report was released earlier in the day. “It will be measured in years.”

“However long it takes, we’re going to be there. We’re not going to prematurely withdraw the support that we think the economy needs,” he added.

The statement aligns with comments from Powell and other Fed officials over the past week or so.

In a major change to its approach to monetary policy, the central bank now has set a stated directive that inflation will be allowed to float above the Fed’s 2% target for a period time after running below, as has been the case for most of the past decade.

The move effectively means that the Fed no longer will hike rates in order to head off inflation that historically had come with lower unemployment rates.

Though he did not list any specific measures, Powell said the Fed may not be done with its accommodation.

“We’ve done a lot of the things we can do, but we can do more and we will do them as we see the need for that,” he said.

Powell called the Friday jobs report “a good one.” Nonfarm payrolls rose by 1.37 million and the unemployment rate slid to 8.4%, still higher than anything since the early days of the financial crisis recovery but a good deal better than the pandemic peak of 14.7%.

Powell again tied the progress of the economy to the coronavirus, and he encouraged following safety guidelines like wearing masks and maintaining social distancing.

“There’s actually enormous economic gains to be had nationwide from people wearing masks and keeping their distance,” he said.

NEWS and COMMENTARY

JPMorgan’s COMEX Silver Stash: Another New Record High

Gold gains as global growth worries lend support

Beware what comes after the easy money binge

Gold is Still Considered the Best Long Term Investment

Oil drops more than $1 after Saudi price cuts, demand optimism fades

GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)

04-Sep-20 1937.60 1926.30 1456.49 1459.56 1634.75 1633.12
03-Sep-20 1934.10 1940.45 1453.86 1459.99 1635.28 1637.74
02-Sep-20 1969.00 1947.05 1475.17 1462.43 1659.47 1645.45
01-Sep-20 1987.95 1972.35 1479.83 1469.60 1661.33 1651.45
28-Aug-20 1955.85 1957.35 1471.97 1472.91 1642.72 1647.31
27-Aug-20 1938.80 1923.85 1467.87 1458.86 1638.87 1632.39
26-Aug-20 1918.50 1932.95 1458.83 1465.95 1624.39 1636.05
25-Aug-20 1925.45 1911.15 1468.35 1455.15 1626.43 1616.26
24-Aug-20 1947.55 1943.95 1484.03 1485.57 1646.26 1643.61


Access Latest Goldnomics Podcast (Part II) Here


Own gold and silver coins and bars in the safest vaults in Zurich, Singapore, London and Dublin with GoldCore.

Receive Our Award Winning Market Updates In Your Inbox – Sign Up Here



Mark O'Byrne

Also on news-goldcore-com

Videos

The Black Friday Stock Market Crash – Gareth Soloway

Inflation Is Everywhere – Kevin Muir Macro Tourist

Inflation Is Here: Peter Boockvar

Blog posts

The Black Friday Stock Market Crash – Gareth Soloway

Black Friday 2021 saw the largest stock market sell-off since 1931. Is this the start of a bigger crash, has the trend changed or is this just a one-time blip? We ask Gareth Soloway of InTheMoneyStocks.com what his charts are suggesting and why he is so bullish on gold Watch the Video to Learn More […]

READ MORE

Why Governments Hate Gold

Do governments hate gold?  The answer: Yes — Governments hate gold because they cannot print it, and it is difficult for them to control. Because they cannot print it or easily control it, gold has little use to them during the never-ending schemes to tax and then redistribute wealth. India is a recent example of […]

READ MORE

Gold and Bitcoin- Besties or Enemies?

Below is a graph of the gold price and Bitcoin since the beginning of the year. Many of the investors in gold and Bitcoin agree that money printing by central banks should stop. They also agree that governments should help people with special programs during a crisis but that once a crisis ends the government […]

READ MORE

Featured

How High is Too High for Rising Government Bond Yields?

READ MORE

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

The Black Friday Stock Market Crash – Gareth Soloway

Inflation Is Everywhere – Kevin Muir Macro Tourist

Inflation Is Here: Peter Boockvar

Blog posts

The Black Friday Stock Market Crash – Gareth Soloway

Black Friday 2021 saw the largest stock market sell-off since 1931. Is this the start of a bigger crash, has the trend changed or is this just a one-time blip? We ask Gareth Soloway of InTheMoneyStocks.com what his charts are suggesting and why he is so bullish on gold Watch the Video to Learn More […]

READ MORE

Why Governments Hate Gold

Do governments hate gold?  The answer: Yes — Governments hate gold because they cannot print it, and it is difficult for them to control. Because they cannot print it or easily control it, gold has little use to them during the never-ending schemes to tax and then redistribute wealth. India is a recent example of […]

READ MORE

Gold and Bitcoin- Besties or Enemies?

Below is a graph of the gold price and Bitcoin since the beginning of the year. Many of the investors in gold and Bitcoin agree that money printing by central banks should stop. They also agree that governments should help people with special programs during a crisis but that once a crisis ends the government […]

READ MORE

Featured

How High is Too High for Rising Government Bond Yields?

READ MORE

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE