The Fed's Walsh's real trump card is actually cutting interest rates!

After gold plummeted by 25%, everyone is shouting for more rate hikes.

But I want to tell you a blind spot in knowledge: the Fed's Walsh's real trump card is actually cutting interest rates!

This episode will thoroughly explain the turning point of gold in 2 minutes.

The one who dares to make this conclusion is a highly influential senior analyst in the industry!

Richard Mills, a mining and macro analyst, founded Aheadoftheherd which has extremely high influence in the resource circle, and frequently publishes analysis articles in over 400 media/websites such as the Wall Street Journal and Forbes.

After the first quarter of 2022, when gold prices fell back below 1700, Richard Mills predicted a wave of central bank gold buying and gave a strong signal to get on board. He took global central bank gold purchases as a new core driver and clearly suggested increasing holdings of gold and silver. This was his most iconic accurate prediction.

Richard Mills recently published a blockbuster report titled "Walsh + Friedman = Rate Cuts." I've extracted the core logic; you must read it all!

In January this year, gold surged all the way to $5,600 on the back of the Fed's rate cut expectations. Then, Trump nominated Kevin Walsh to take over the Fed, and the gold price immediately reversed and plummeted to around $4,000 currently.

The market originally thought Walsh was Trump's man and would certainly ease and cut rates after taking office. The result was the complete opposite. Walsh turned hawkish, causing gold to fall on a bumpy path.

Kevin Walsh is a staunch monetarist, deeply believes in Friedman, and is a direct disciple, almost completely inheriting the core ideas of monetarism.

Many people may not know this. During his studies at Stanford, Walsh served as Friedman's research assistant and was personally taught by Friedman. Walsh has publicly acknowledged that Friedman had a huge influence on him.

Walsh firmly believes in Friedman's famous saying: "Inflation is always and everywhere a monetary phenomenon." He does not look at ordinary CPI and PCE, but uses the "trimmed mean inflation rate" to identify the real trend of inflation.

And this indicator automatically excludes one-time events such as oil price surges and tariff shocks. Although the overall PCE is now at a high of 3.6%, the trimmed mean PCE that he cares more about is only 2.35%, which is very close to the reasonable target value believed by the Fed.

So why haven't they cut rates yet?

Because just then the Iran war suddenly broke out, oil prices soared, and overall inflation data was severely driven up, so he had no choice but to keep interest rates unchanged.

But Richard Mills pointed out a key detail: Walsh himself admitted that if you exclude housing and energy, monetary policy is actually already tight.

So it can be inferred that once the war ends and oil prices stabilize, those temporary inflationary tides recede, he will have ample reason to start cutting rates.

Moreover, the U.S. government has nearly $10 trillion in debt that needs to be rolled over, with annual interest payments close to $1.2 trillion, and Trump is very eager for low interest rates. So, Walsh is not refusing to cut; he is waiting for the right timing.

Another blockbuster signal is that a few days ago, data from the World Gold Council showed that central banks had already returned to net buying in April, and ETF funds are quietly flowing back.

Seeing this, you might ask, with all that said, when will gold really rise?

Richard Mills' original words are:

"We are now in a holding pattern where gold is waiting to resume its bull market. The moment rate cuts begin is the starting gun for gold and silver to take off again."

Remember, inflation is always a product of money printing, and what gold is really waiting for is not a ceasefire, but a shift in interest rates.

Do you think the Fed will cut rates this year? Comment with "Yes" or "No" in the comments section, and let's verify together.