From The Dollar Collapse:
... To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0%-0.25% and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.
This, of course, comes as no surprise to anyone. But seeing it in print had exactly the impact you'd expect. Stocks erased their early losses, the dollar tanked, and precious metals soared. With good reason. It is now the stated policy of the U.S. government to have negative real interest rates for years to come (eons in trader-time).
The carrying cost of gold and silver bullion will remain more or less zero, while all manner of...
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