Although the market has already digested the Fed's decision to cut interest rates by 50 basis points last week, many economists expect the rate cut to not be as large. However, according to a fund manager, the Fed's new round of easing sends a strong message to investors.

During an interview last week, Ryan McIntyre, Managing Partner at Sprott Inc., stated that Powell is walking a tightrope between supporting U.S. economic activity and managing the high prices of assets.

Despite Fed Chair Powell's statement that the Fed is not in a hurry to lower interest rates, McIntyre suggests that investors should pay more attention to the Fed's actions rather than Powell's remarks.

He said, "Obviously, in the case of a 50 basis point rate cut, the Fed does not want to be seen as lagging behind."

McIntyre added that larger issues than the Fed's monetary policy are at play. He expects the Fed to continue to focus on supporting the economy even as inflation remains stubbornly high.

He said, "The U.S. sovereign debt crisis remains the greatest existential threat to the economy. What the Fed least wants to see is an economic downturn, as that would lead to a sharp increase in deficits. This is the perfect environment for gold, as the Fed clearly leans towards lowering rates. Gold remains the simplest asset to protect your wealth and capital."

While the Fed has already taken impressive initial measures to support economic activity, McIntyre believes that it is only a matter of time before investors turn to gold for portfolio diversification.

Mackin Tall said that even if the Federal Reserve initiates a new easing cycle, he expects the economy to deteriorate before improving. He pointed out that it will take some time for the economy to feel the impact of a new easing cycle. He also noted that even with a 50 basis point rate cut, interest rates are still significantly constrained.

Mackin Tall stated: "Valuations of many different categories of assets are extreme, I think gold is a logical choice. Even with rate cuts, the economy has not yet emerged from the crisis. I guarantee that some things we are not discussing today will happen."

Mackin Tall reiterated that sovereign debt remains the biggest threat to the global economy.

"If you look at financial markets from a sovereign level, due to high global debt levels, gold is the only choice because it is the only asset considered a global currency."

Mackin Tall pointed out that the United States is in an unstable situation as the government is expected to spend over 1 trillion dollars to repay debt. He added that with service sector expenditure exceeding growth expectations as a percentage of GDP, economic threats will arise.

According to the Federal Reserve's latest economic forecast, US GDP is expected to grow by 2% over the next three years. The Congressional Budget Office estimates that this year, service sector expenditure as a percentage of GDP is expected to rise to 3.1%.

Mackin Tall said: "We cannot grow our way out of the current fiscal situation, hence the reason why all roads lead to gold. Ultimately, the vast majority of investors will find a way to invest in gold. Gold is sure to break the $3000 per ounce mark, it's just a matter of time."