Video News/In Focus with Jeremy Szafron

(Kitco News) - The Federal Reserve's next move will be rate cuts rather than hikes, and the path there runs through a recession, according to Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence. Speaking with Kitco News, McGlone said he expects a series of 50 basis point cuts, arguing the Fed is effectively following the stock market and that Chair Kevin Warsh is unlikely to hike into a weakening economy ahead of the midterms. He said the US equity market is now the single biggest driver of Fed policy, inflation, and commodities, and warned that a normal 10% to 20% correction that holds could pull CPI toward zero and crude oil toward $40. McGlone also made the contrarian case that oil is falling despite the Iran war because pricing power has shifted from OPEC to the Western hemisphere, and said gold and silver have become "sock puppets" to the stock market, calling the metals' recent highs a likely cycle peak.