Jeffrey Christian: Fed Can Hike a Lot Further, How Gold and Silver Will Perform
The US Federal Reserve is taking steps to fight inflation, and two rate hikes are in the bag so far this year.
Many market participants are skeptical about how much higher the central bank will be able to go, but Jeffrey Christian, managing partner at CPM Group, believes it can move rates “a lot further.”
Speaking to the Investing News Network at the recent Vancouver Resource Investment Conference (VRIC), he said there’s still quite a bit of room before real demand and borrowing start to hurt.
“The Fed still has an enormous amount of capacity to raise interest rates without killing the economy,” he said.
In terms of whether a recession is in the cards, Christian said many people are calling for one in 2023, and that timeline could be possible. However, he doesn’t think it will happen that quickly.
“I don’t see necessarily hitting the limits of growth that would trigger much higher inflation, which would trigger a recession. I do think it’s coming, but I wouldn’t be surprised if it’s 2024 or 2026,” he said.
Christian said gold and silver prices are weaker than his firm expected they would be at this time of the year, and he thinks the markets will be vulnerable to further price weakness for the next few months.
However, underlying issues will provide support and prevent the metals from falling too far.
“We’re still looking for prices to be a little bit weak in the next few months, and basically move sideways into next year,” he said. “At some point, those bigger issues become much more prominent and much more demanding of public attention — and then you start seeing a revival of investment demand for gold and silver and higher prices.”
Watch the interview above for more from Christian. You can also click here for our full VRIC playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.