Last week, gold prices continued rising after the Federal Reserve meeting. The metal closed the week at $1,781.80 per ounce. Fed Chairman Powell has said that what we are experiencing now is simply a “slow down in growth”, not a recession , although a recession is defined as two consecutive months of negative GDP. However, the real concern is not just a recession, but the most intractable of all economic conditions: stagflation. The Federal Reserve is relying on the economic slowdown precipitated by raising interest rates to bring inflation back down from over 9% to 2% by the end of the year. The problem is that inflation is not coming from an overheated economy, but from Fed policies, which has increased the M2 money supply by +40%, and from an administration waging war against fossil fuel sources of energy. Government directives are being issued in an attempt to make a huge structural transition happen right now, which generally takes 30+ years. The problem is that, not only is the Congress NOT dealing with the real causes of inflation, they are about to make it even worse with more spending bills that will pour gasoline on the inflation fire, while claiming they are firemen. Gold has historically served as a hedge against inflation for investment portfolios. Rick Andrews is president of Avant Capital Management.