Greetings:
 

It’s been said there’s a pot of gold at the end of every rainbow. Yet, after last week’s regularly scheduled meeting of the Federal Open Market Committee, the Fed helped gold seem more” charmed” than ever.  

As expected, last week the Fed decided to keep the Fed Funds Rate (the lending rate banks charge each other for the use of overnight funds) at 0.25%. The Fed also reiterated that economic conditions warrant keeping the Fed Funds Rate low for an “extended period”.  But the Fed’s Policy Statement was clearly more downbeat on the economy and showed greater deflationary concerns than the previous Fed Statement. It also gave the feeling that the Fed will jump in with more Quantitative Easing (QE) if necessary, meaning the Fed is prepared to create Dollars through Treasury purchases, which in turn causes the Dollar to weaken.  Last week in response precious metals like Gold and Silver moved higher as a hedge against a weaker Dollar.  

However if the Feds do step in with QE it could be good news for the Bonds and Home Loan Rates. Some hedge fund managers also think that it would place Stocks in a “no lose position”, however I am beginning to think that our economic news is as schizophrenic as our weather!  

We shall see what October brings. 

As always should you have any questions or would like to set up an appointment to view properties, do not hesitate to call our office or email me at patricia@centrecityproperties.com. 

Sincerely, 

Patricia Leone

Centre City Properties 

Broker

DRE License # 01076944 

PL:sd

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