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The Fed is 'doing absolutely the right thing' - Liberty Gold's Cal Everett
Steep interest rate hikes are hard on commodities and the markets, but the move is necessary, said Liberty Gold CEO Cal Everett.
On Friday Everett recorded Kitco Roundtable with mining audiences manager Michael McCrae and Kitco correspondent Paul Harris. Liberty Gold is focused on exploring for and developing open-pit oxide deposits in the Great Basin of the U.S. Everett trained as a geologist and had stints at BMO Nesbitt Burns and PI Finanial before taking the reins at Liberty.
The Federal Reserve's rate hikes have been hard on investors. In early September the Fed increased its benchmark rate by 75 basis points, and another 1.25 percentage points is in the cards before year end. This week gold hit a 2.5 year low. The S&P 500 has dropped nearly a quarter year to date.
"I think they're absolutely doing the right thing by raising rates. Yes, it's punitive, but I think they're doing the right thing," said Everett.
The problem with inflation is that it is hard to tamp down once it gets entrenched, said Everett.
"Once a market is fixated on a margin, it will fight to keep those margins."
