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Jerome Powell’s Shifting Narrative on Interest Rates Shakes up the Economy

Jerome Powell’s Shifting Narrative on Interest Rates Shakes up the Economy

Federal Reserve Chairman Jerome Powell will be remembered in history as either an effective Fed chairman or a total flop.

That may all come down to how the stock market fares this year.

If the stock market soars, Powell will be hailed as a hero for prolonging the 10-year bull market.

If the stock market crashes, that would devastate the economy. And Powell would be blamed for raising interest rates too much, too fast.

Some of our experts at Sovereign Investor Daily think the Fed is leading our country on the path to another financial crisis.

But no matter which way the market heads, and no matter what the Fed does, we’re always finding new opportunities for our readers to profit.

In that light, let’s take a look back at what our experts at Sovereign Investor Daily had to say about the Fed and the economy this week.

Why Rates Aren’t Rising: Jerome Powell Can’t Say No

Just a few months ago, Fed Chairman Jerome Powell was hell-bent on raising interest rates.

Then there was a dramatic shift.

Now Powell says the Fed “will be patient” with its monetary policy. He told Congress in late February that there’s “no rush” to hike interest rates.

What happened?

Crypto Profit Trader Editor Ian King says Powell is now a “yes-man.”

According to Ian, this sudden change is the only thing that matters for stocks and the economy this year. That’s because, he warns, “raising rates might bring on another recession.”

To read Ian’s article, click here.

Now, here’s what you need to know in the meantime…

How to Protect Your Portfolios

The Stock Market Is a House of Cards: In the aftermath of the financial crisis, the world’s central banks rescued the financial system by buying up practically worthless investments from the private sector.

Renowned economist and financial expert Ted Bauman calls this “a massive subsidy intended to shield the economy from the effects of the bad decisions made by banks and corporations before 2008.”

He explains: “The bottom line is that what’s left of the U.S. bull market is based on an accounting trick” by central banks like the Federal Reserve.

Do you trust the Fed to do the right thing? Ted doesn’t. And neither do the money managers and everyday investors who are fleeing the stock market right now.

To read Ted’s warning, click here.

Amazon’s Supermarket Offensive: Low interest rates have helped fuel Amazon’s rapid expansion into a variety of industries. And the tech giant now has plans to launch a new grocery-store business.

Total Wealth Insider Editor Jeff Yastine warns that Amazon “is exhibiting classic ‘overreach’ behavior.”

Jeff writes: “Nearly two years ago I said Amazon’s purchase of Whole Foods would be a failure. It’s had that in spades.”

He continues: “Not only did prices not reflect the expected change, but customers started noticing things — like rotting fruit in the displays — that would have never happened under the founding management.”

To hear more about why Jeff thinks Amazon’s supermarket offensive will fail miserably, click here.

Economic Indicators Point to a Decline: The interest rate has a major effect on economic growth and the stock market. But Peak Velocity Trader Editor Mike Carr points out an overlooked indicator that may be worth paying even more attention to.

Mike says that using this indicator to trade “makes about twice as much money as a buy-and-hold strategy.”

Plus, using it as a sell signal has “avoided every bear market” since the Commerce Department began publishing this data in 1992.

To find out how to avoid bear markets with this overlooked indicator, click here.

How to Grow Your Portfolios

Commercial Real Estate Is Booming: Real estate investments of all kinds benefit from lower interest rates. That’s a big reason why commercial real estate loans have risen at a rapid pace since 2013.

Commercial Real Estate Loans 2004-2018

Insider Profit Trader Editor Brian Christopher says that low interest rates have “contributed to the lowest delinquency rate on these loans since [the Federal Reserve] began reporting the stat in 1991.”

Brian then highlights two great commercial real estate companies you can invest in now to profit from this trend. One of them yields more than 7%, and the other has a yield of more than 8%!

To hear more about these two commercial estate stocks with huge yields, click here.

What’s Next for Rates: The Fed’s Next Meeting

The next Federal Open Market Committee meeting is March 19-20.

Continue to follow Sovereign Investor Daily every week for the latest analysis and insights on what the Fed has planned for the economy and your investments.

I’ve heard a few insights from our editors during our weekly chats that I’m excited to share with you soon. So stay tuned!

Regards,

Jay Goldberg

Assistant Managing Editor, Banyan Hill Publishing

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