The U.S. Economy Will Not Grow At 3% This Year.

Wilbur Ross came out this week and admitted that the US GDP is not going to grow at 3 percent this year I mean that's why they pay this guy the big bucks right I mean you don't need to have that much information you know to be that's smart to figure out something that's that obvious but they finally admitted that the economy is not going to grow by 3 percent this year in fact it may even be in a recession this year so it's not only not going to grow by 3 percent it may not grow at all.

The Markets Are Beginning To Look Beyond These Rate Hikes

The dollar market is acting much different than the the gold market rather than rising the dollar has been falling. Normally you get some strength of the US Dollar when the probability of an interest rate hike rises because after all higher rates everybody thinks that's bullish for the dollar and so as the probability of a rate hike increases so too does the value of the dollar but that didn't happen this time in fact the dollar closed the day at about a six-month low in the dollar index.

I think what's happening is the markets are beginning to look beyond these rate hikes to see the next rate cut understanding that the Fed is not going to come close to delivering the type of tightening that it had been indicating was coming that we are not going to normalize interest rates.

Federal Reserve: Raising Rates Into A Recession

It's quite possible that the Federal Reserve does raise interest rates in June even if it ends up that it turns out in hindsight that they raised rates in a recession. (SPDR S&P 500 Index ETF (SPY), SPDR Gold Trust ETF (GLD))