The Federal Reserve has NOT Lowered Interest Rates Since Last December…

And will NOT this Week.

The Federal Reserve (Fed) isn’t lowering interest rates right now for a few key reasons, mostly tied to inflation, economic stability, and labor market strength:

🔺 1. Inflation Is Still Above Target

  • The Fed’s inflation target is 2% (measured by the core Personal Consumption Expenditures index).
  • While inflation has come down from its 2022 highs, it remains sticky—especially in services and housing.
  • Lowering rates too soon could reignite inflation, especially with consumer demand and wage growth still relatively strong.

💼 2. The Job Market Remains Strong

  • Unemployment remains low (around 4% or below), and job growth continues.
  • A strong labor market gives the Fed more leeway to keep rates high without triggering a recession.
  • The Fed wants to see some softening in wage growth and hiring to feel confident inflation will stay down.

📉 3. Avoiding Another Inflation Spike

  • Cutting rates now could lead to increased borrowing and spending, which might undo progress on inflation.
  • Think of it as the Fed trying to “hold the line” and make sure inflation is firmly under control before stimulating the economy again.

💬 Fed’s Own Statements

  • Fed Chair Jerome Powell has repeatedly said they need “greater confidence” that inflation is sustainably returning to 2% before cutting.
  • The Fed is also wary of making a mistake like in the 1970s—easing too soon and triggering another inflation wave.

🗓️ When Might Rates Be Cut?

  • Markets are watching for possible rate cuts later in 2025, especially if inflation trends down and the labor market cools.
  • Some economists now expect fewer or delayed cuts depending on incoming data.

In Summary:

The Fed isn’t lowering interest rates yet because:

  • Inflation is still too high.
  • The economy is still strong.
  • They don’t want to risk a rebound in inflation by acting too early.

Here’s how the Federal Reserve’s decision not to lower interest rates is affecting the gold and silver markets — and what it means for investors like you at American Rare Coin & Bullion:

🏦 Interest Rates & Precious Metals: The Big Picture

1. Higher Interest Rates = Stronger Dollar

  • The Fed’s tight monetary policy supports a strong U.S. dollar, which typically weighs on gold and silver prices.
  • A strong dollar makes precious metals more expensive for foreign buyers, reducing global demand.

2. Higher Rates = Higher Yield on Cash & Bonds

  • When rates are high, Treasuries and savings accounts offer better returns.
  • That reduces the appeal of gold and silver, which don’t pay interest or dividends.
  • Some institutional investors shift capital from metals to yield-bearing assets in these environments.

📈 Why Gold and Silver Still Hold Value in This Climate

Despite high rates, gold and silver prices remain resilient due to several factors:

🔥 3. Persistent Inflation

  • While inflation has cooled, it’s still higher than the Fed’s 2% target.
  • Gold and silver are historically trusted hedges against inflation and currency debasement.

🌍 4. Global Uncertainty

  • Geopolitical tensions (e.g., Russia/Ukraine, China/Taiwan), political instability, and growing U.S. debt all support demand for safe-haven assets.
  • Central banks—especially in China, India, and Russia—continue to buy gold aggressively, supporting long-term prices.

💳 5. Debt & Deficits

  • The U.S. national debt has surpassed $35 trillion, and interest payments are now over $1 trillion annually.
  • Long-term, this is inflationary and undermines confidence in fiat currencies, making gold and silver more attractive.

🪙 What This Means for Gold & Silver Investors

✅ Bullish Indicators:

  • If inflation remains elevated and rate cuts are delayed, gold and silver could see volatility, but long-term demand stays strong.
  • Any sign of the Fed reversing course (cutting rates, QE) is usually very bullish for metals.
  • 2025 rate cuts (once they come) could ignite a new rally in both gold and silver.

📉 Near-Term Pressures:

  • Higher rates may create short-term selling pressure, especially among speculators and ETFs.
  • But savvy investors use these dips to accumulate physical metal, especially during periods of market uncertainty.

🛡️ Bottom Line for Clients at American Rare Coin & Bullion

Even in a high-rate environment:

  • Gold and silver remain powerful long-term hedges against inflation, debt risk, and currency debasement.
  • Buying during periods of rate-driven pullbacks often results in better pricing for physical bullion and rare coins.
  • Now is still a strategic time to accumulate, especially with the potential for Fed easing later in 2025.

🏦 What It Means for Gold & Silver Investors

As the Federal Reserve holds off on interest rate cuts, many investors are asking what this means for precious metals. At American Rare Coin & Bullion, we believe the current environment continues to present major opportunities — especially for those looking to preserve wealth and hedge against economic uncertainty.

💡 The Fed’s Game Plan: Higher for Longer

Despite cooling inflation, the Fed remains cautious:

  • Inflation is still above 2%
  • Job market remains strong
  • Cutting too soon could reignite inflation

So, interest rates are staying higher for longer — supporting the dollar and placing short-term pressure on gold and silver prices.

🔐 What This Means for Precious Metals

Even with rate pressure, gold and silver remain core assets for smart investors:

✅ Safe-Haven Demand: Geopolitical tension and U.S. debt are driving global demand for physical gold.
✅ Inflation Hedge: Persistent inflation continues to erode dollar purchasing power.
✅ Central Bank Buying: Nations like China and Russia are increasing their gold reserves — not selling.
✅ Smart Accumulation: Pullbacks caused by Fed policy are often ideal buying windows for long-term holders.

⭐ Product Spotlight: $20 Liberty Gold Double Eagles

There’s no better time to own a piece of American monetary history.

🦅 Why $20 Liberty Gold Coins?

  • .9675 oz of pure gold, struck between 1849–1907
  • Pre-1933 gold coins are exempt from government confiscation under historical precedent
  • Highly liquid and widely recognized among dealers and collectors
  • Tangible, private, and not tied to the digital banking system

These coins are more than bullion — they are sound money with historical integrity. And right now, they offer exceptional value while modern bullion prices remain under pressure.

📣 Call to Action: Own History. Protect Wealth.

At American Rare Coin & Bullion, we have a limited quantity of $20 Liberty Double Eagles available now. Whether you’re looking to diversify your portfolio, pass on generational wealth, or simply hedge against inflation — this is your moment.

👉 Call us today at 866.789.2646 or visit https://rarecoinpros.com/product/20-liberty-gold-double-eagle-bu/ to secure your $20 Liberties before the next Fed move sparks a market shift.

Buy smart. Buy real. Buy rare.

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