Chicago Federal Reserve president Austin Goolsbee may be known as Mr. Fixit after stopping a plunging stock market and risk off infected metals. If the market was melting down Mr. Goolsbee seemed to suggest that if things go bad the Fed will “fix it”.On an interview with CNBC’s, he said that the central bank’s would react to signs of weakness into the economy he said quote I’m not going to bind our hands of what should happen going forward because we’re still going to get more information but if we’re not overheating we should not be tightening or restrictive in real terms.Regardless the markets seem to take that as a sign the Fed will do whatever it takes to stabilize and that’s all we needed as the carry trade around the globe pushed down risk ask after those comments, we saw a big bounce back in all the precious metals and industrial metals and while we haven’t got all the way back it definitely seems to have put in a floor.Copper really seems to get overwhelmed to the downside in the economic data that came out of little later in the day suggest that it was way overdone.Marketwatch reported that the service side of the economy in which most Americans work rebounded sharply in July and countered the growing view that the U.S. might be tipping closer to recession. An index of service businesses produced by the Institute for Supply Management jumped to 51.4% last month from 48.8% in June. The June reading was the lowest since May 2020 during the height of the pandemic. Numbers under 50% are viewed as positive for the economy. Most companies said business was either” flat of expanding gradually,” said Steve Miller, chairman of the survey. Economists polled by The Wall Street Journal had forecast a reading of 50.9%.They might be putting on some of the risk premium because of the increased risk of a growing conflict in the Middle East the situation between Israel and Iran doesn’t seem to be coming down and even though Iran is trying to suggest a limited response Israel is steadfast in its belief that it will respond aggressively to any attack.This should be a good opportunity to put on golden silver on the brakes we continue to like the long gold short platinum tradeMore By This Author:The Energy Report: Bullish Star Alignment
Copper Can Bounce – Manic Metals Report
The Energy Report: The Fossil Fuel Comeback
