Trump, Not Yellen, Will Push Rates Higher in 2017 -- Trader

KITCO NEWS -- As markets digest the Fed's latest interest-rate hike, one trader says that this may only be only the beginning. According to Todd 'Bubba' Horwitz, host of the 'Bubba Show,' markets will likely see four hikes in 2017, but not because Fed Chair Yellen deems it appropriate, but rather because President-elect Donald Trump will 'demand' it. 'I think Trump wants to see interest rates rise because he wants to create more stimulus in the economy,' he told Kitco News. 'The only way the banks are going to lend money is if they get fair spread, and the only way to do that is to get interest rates higher,' he said. As for gold, Bubba expects the yellow metal to finally bottom in 2017, falling down to about $1,050 to $1,100 before moving higher again.

This article is commentary by an independent contributor.