Former Demos think tank senior researcher Nomi Prins said that the ability of the Federal Reserve to control inflation is limited, and this sign is becoming increasingly clear.

She said, "The Fed cannot control inflation, whether the inflation rate is slightly below 2%, slightly above 2%, or reaches 3% or 4%, the Fed actually cannot influence the supply and demand relationship, geopolitical events or other factors that drive inflation." This evaluation reflects growing concerns among economists about the Fed's existing strategies.

Vahan Roth, the executive director of Swissgrams AG, pointed out that the Federal Reserve still has a long way to go to implement "loose monetary policy". He wrote, "Although price pressure in several developed economies has fallen from nearly double-digit highs in the past few years, countless households and businesses still face considerable pressure."

Prins pointed out the actual consequences of the Fed's rate hike cycle on the real estate market. She said, "As the Fed raises interest rates, the average cost of house loans has almost doubled in the past few years. This means that people need to pay higher house loans or pay higher rent for others' house loans before paying any other expenses."

According to housing data from America Real Estate, the average interest rate for 30-year fixed-rate mortgages has risen to 6.5%, affecting homeowners across the United States.

Prins also discussed the impact of inflation on gold, and she believes that persistent inflation and the large-scale purchase of gold by central banks around the world are the reasons for the rise in gold prices.

She said, "Last year, the gold price was about $1,919, and now we see a price of about $2,370. Why? Because inflation has always existed, and we know that central banks around the world have been increasing their purchases of gold, which has pushed up demand for gold."

Central banks of countries such as China, India, and Turkey are diversifying their foreign exchange reserves and reducing their dependence on the US dollar, which is further pushing up gold prices. The World Gold Council reported that in the first half of 2024, the amount of gold purchased by central banks around the world reached a historic high, with China and India leading the way.

Prins said, "In addition to the past few months, China has been buying gold for 16 consecutive months, and India is also increasing its gold purchases. Turkey and many other emerging market countries are shifting their trade relations from being denominated in US dollars to being diversified. This trend will continue."