Merk Investments Founder: Fed Tightening Won't Change Fiscal Deterioration, Gold's Long-term Value Remains

English summary

Axel Merk, founder of Merk Investments, notes that despite Fed Chair Kevin Warsh restarting tightening and hiking rates by 25 basis points to restore credibility, the long-term trend of worsening US fiscal deficits remains unchanged. He argues monetary policy cannot solve fiscal issues alone, and debt risks behind the AI boom may force future rate cuts, maintaining gold and mining stocks' value for diversification.