With 3 of 4 metals higher this morning, there is turbulence amongst those entrusted with fiscal and monetary supervision here in the United States. Federal Reserve Chairman Jerome Powell mentioned earlier that “(U.S.) Federal fiscal policy is not on a sustainable path….” Keep in mind that the Fed Chairman is responsible for monetary policy, not fiscal policy. Meanwhile, analysts at Bank of America say that conditions in the treasury market are unsustainable, placing the global financial system at risk.

The current monetary policy objectives (controlled by the Fed) are to lower inflation. They use primary tools to adjust interest rates (higher) and decrease the money supply.

The current fiscal policy objectives (controlled by Congress and guided by the President) are to keep the economy growing. They use primary tools for government spending (which has been increasing), setting tax rates, and collecting revenue (adding 87,000 IRS agents).

Chairman Powell is saying that while he is trying to lower inflation, those in charge of fiscal policy keep stoking the inflationary fires simultaneously, somewhat canceling out his efforts.

Sensing market disruption, investors are moving assets into the safety of precious metals.