Michael Pento-Gold Goes To All-time Highs If Fed Admits It Cannot Raise Rates

If the Fed does not raise rates at its September meeting as it has been warning money manager Michael Pento says, “The Fed is going to lose all their credibility on September 21st. Half of the Fed, and this includes Fed Head Janet Yellen, has been telling you that the economy has healed and they are ready to resume interest rate hikes. If they raise rates, and I don’t think they do, they are not going to be ‘data dependent.’ They are just freaking out about having promised to save the world with four rate hikes in 2016 and garner some credibility before the end of the year. If they don’t raise rates, they are going to lose all their credibility anyway because they have been threatening to do so. If they do raise rates, they are going to lose credibility because (the economy is sinking) and they are not ‘data dependent.’ The data here in the United States is screaming recession. . . . If they raise rates, they are going to absolutely crater the stock market and the bond market. . . .”

If the Fed admits it can’t raise rates, Pento predicts, “Gold is going to become completely unglued from its moorings and will shoot up very close to record highs very quickly. It’s not going to happen until the Fed admits that it cannot raise interest rates.”