Risk Management

Risk management. That's what Jerome Powell called it today. According to Powell, that risk lies in American employment. Things are indeed not going well there. In fact, they are going completely in the wrong direction.

The Fed lowered interest rates by 0.25% today. The dot plot, in which each Fed member indicates how many interest rate cuts are still to be expected, indicated two more cuts for this year.

The impression I got from the Fed was that they are quite concerned about employment, but because of the inflationary effects of those import tariffs, they do not yet dare to lower interest rates significantly.

The Fed is trying to find a happy medium. That will not work. With interest rates only 0.25% lower, you cannot reverse the trend of rising unemployment. That requires significantly lower interest rates.

And whatever the Fed does, inflation will still rise because of those import tariffs.

I am reasonably satisfied. We got one interest rate cut, with a good chance of two more this year. That's not bad, considering there isn't much of the year left.

The fact that the Fed sees declining employment as a major risk indicates that if those figures deteriorate, we can expect even more interest rate cuts.

So those extra interest rate cuts are likely to happen. Because I see no signs that the American economy is going to pick up.

Gold & Silver

One interest rate cut now and two more later this year. Obviously good news for gold and silver. That was not yet reflected in the price of gold and silver today.

The short club was pushing down prices with futures. Looking at the daily charts, that was very volatile today. But they had to do it.

Because without such actions, silver, for example, would have immediately risen to 50 dollars today.

Gold and silver have not suffered much damage. Prices have not yet reached the support levels of $40 for silver and $3,500 for gold.

So despite the somewhat less pleasant day, according to technical analysis, there is nothing to worry about. It won't be long before bargain hunters start striking.

Crytocurrency

The more important part; will BTC break through this crucial resistance zone?

All I’m sure about is that, once Bitcoin stabilizes, we’ll start to see big breakouts on Altcoins occur.