Fed Admits Inflation Reality Sends Markets Reeling

The Federal Reserve officials have finally acknowledged that inflation is a real concern, according to recent comments from Kevin Warsh, the new Fed official. At the Jackson Hole economic symposium last week, Warsh stated that the Fed realizes inflation is high and their work in fighting it is not yet done.

This revelation sent shockwaves through financial markets, with investors taking it as a sign that a rate hike may be imminent at the September Federal Open Market Committee (FOMC) meeting. The dollar surged, while gold and silver prices plummeted, with gold losing $146 on Friday and silver shedding $2.83.

The price of oil also continued to rise, reaching $83.80 by week's end, while the 10-year Treasury yield climbed to 4.71%.