September 22, 2016 -- Markets rejoiced yesterday following a decision by the FOMC to stay the course on extraordinarily low interest rates. Gold and silver prices surged to their highest levels in more than two weeks and the major U.S. stock indices gained roughly 1%s.

Given the recent weakness in economic data and the deep reluctance to tighten that Fed officials continue to show, yesterday’s decision came as no big surprise. But regular jawboning from Fed governors about recovery and the “strong case” for higher rates has kept investors guessing.

Janet Yellen and her cohorts also moved to ratchet down expectations for the frequency and size of rate hike over the next couple of years. The so-call “dot plot” shows the forecast for the Fed funds rate at just over 1% by the end of 2017.

However, these officials have a dismal track record when it comes to projections. The forecast at the end of 2015 was for 4 rate hikes this year. The actual number is likely to be zero. In fact, if the recent weakening in employment and GDP continues, we could see the Fed lower rates, perhaps even push them negative.

Live prices at MoneyMetals.com show gold currently trading at $1,338.05 per ounce on the global market, and silver is coming in at $20.00.