The Dividend Cafe Wednesday - January 28, 2026
Jan 28, 2026
A calm market day with the Fed holding rates and only minor stock and bond moves. A Wall Street Journal critique of Fed policy and the idea that growth does not always spark inflation. How a weaker dollar is lifting exporters, emerging markets, and precious metals. A discussion of longer-term risks if dollar weakness persists and what to watch next.
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Fed Pause, Quiet Markets, Metals Rally
- The Fed left the federal funds rate unchanged after its two-day meeting, and the press conference was uneventful.
- Stock indices and Treasuries showed minimal movement while precious metals rallied significantly.
Growth Isn't Necessarily Inflationary
- David Malpass argued growth is not inherently inflationary and criticized expansive Fed balance-sheet actions.
- Brian Szytel agrees that QE is distortive and that the Fed has become an overpowered arbiter of market volatility.
Weaker Dollar's Short-Term Effects
- A weaker dollar provides short-term benefits: boosts exports, helps emerging markets repay dollar debts, and lifts commodity prices.
- The recent gold and silver rally is at least partially linked to the dollar's decline, though the host questions extreme price moves relative to modest currency moves.