• BRICS are actively working to reduce global reliance on the U.S. dollar through de-dollarization and digital payment systems.
• A weaker dollar could lead to higher inflation, rising interest rates, and economic instability in the U.S.
• Precious metals held in a Gold IRA can help protect savings against the risks of de-dollarization.

BRICS and De-dollarization

De-dollarization is accelerating, and with it, the threat to the U.S. economy. The BRICS bloc has long sought to challenge the U.S. dollar’s dominance. Both to shield their economies from a weaponized dollar and to unseat the U.S. as the global superpower. As the movement gains momentum, concerns are growing. Especially now that the BRICS are exploring ‘digital dollars’ to disrupt the current financial order. The BRICS are taking a long-term, steady approach to de-dollarization. But once they succeed, the consequences for the U.S. will be severe. Americans need to start thinking long-term too, which means preparing now.

Trump Fights De-Dollarization

President Trump made his stance clear on this issue. He claimed that the BRICS bloc was “dead” and threatened to impose tariffs of 150% on imports from BRICS nations for “playing games with the dollar.” He also warned that if BRICS countries proceeded with their plans, they would lose the opportunity to sell any of their assets to the United States. ¹

BRICS Expansion

The BRICS bloc is continuing to expand its influence. Besides the original five members, the group has added Iran, Ethiopia, the UAE, Egypt, and Indonesia. Countries like Malaysia, Vietnam, and Thailand are now considered “partner countries.”

Together, it represents approximately 54.6% of the global population. 27% of the global nominal GDP and 36% of global GDP at Purchasing Power Parity (PPP). They occupy around 25% of the world’s total land area. BRICS has a significantly larger population and land area than the U.S. and Europe combined. The West may lead in nominal GDP but is comparable in GDP at PPP terms.²

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A variety of factors are fueling de-dollarization. Countries like Russia, China, and Iran face the pressures of U.S. sanctions. Others, like Brazil, are motivated more by economic pragmatism than geopolitics. For years, the standard practice for international trade has been to first convert local currencies into U.S. dollars. Conduct the trade in dollars. And then convert back to the local currency. But this system can prove costly and inefficient. The BRICS nations are eager to find alternatives.

The Observa China think tank said, “The aim is to develop an alternative payment system allowing trade to be settled in local currencies, an idea that gains traction each time Washington imposes sanctions or exerts pressure on member states.”⁴

In fact, de-dollarization is already happening. Ninety five percent of trade between Russia and China is being conducted in rubles and yuan.

BRICS Goes Digital

The BRICS are taking major steps to build a new global financial infrastructure to rival the West. The bloc has created the New Development Bank as an alternative to the IMF. They see the IMF as a tool for Western control.  The BRICS nations are also creating a secure global messaging platform to compete with SWIFT, the dominant network for international bank transfers.

One notable initiative is the creation of BRICS Pay. It’s a decentralized payment system developed by China and Russia. This system aims to unite the financial markets of BRICS member states. Increasing trade volume and helping transactions as a result. It uses digital financial assets (DFAs) like cryptocurrencies and tokenized gold. By adopting DFAs such as blockchain networks, BRICS can bypass Western sanctions. They are making a digital end run around the U.S. dollar’s influence in international trade.

Russia has expressed confidence in the long-term potential of this shift. As one Russian official noted, “We should not expect a huge leap forward… there is still a long way to go to gradually transition from payments in national currencies to the creation of a single BRICS currency.” The creation of a single BRICS currency may still be distant goal. But the groundwork for de-dollarization is already being laid.⁵

Consequences of De-Dollarization

If the U.S. dollar loses its status as the world’s primary reserve and trade currency, the consequences could be far-reaching. A weaker dollar could result in reduced global demand. Thereby driving up the cost of imports and leading to higher inflation. With more expensive imports, businesses and consumers would face increased costs. This could push the U.S. to raise interest rates to attract investors. However, higher rates would also increase borrowing costs, further challenging the U.S. economy.

Additionally, a weaker dollar could lead to economic instability. It can cause market volatility and uncertainty. The U.S. would also lose much of its economic leverage. Imposing sanctions or influencing global trade could become impossible.

Conclusion

The BRICS nations are steadily pursuing de-dollarization. And now, they are adopting digital assets to break the world financial system. The U.S. economy faces significant threats. A weakening dollar, higher inflation, and rising interest rates are all possible.  And they all could have negative consequences for your savings and investments. To protect the value of your retirement funds during these uncertain times, consider putting your savings into physical precious metals. Held in a Gold IRA, they can help safeguard your financial future from the risks of de-dollarization. To learn more about how a Gold IRA can help secure your future, call 800-462-0071 today.

Notes
1. https://www.scmp.com/news/china/article/3303030/de-dollar-diplomacy-brics-interest-alternative-global-currency-stirs-trumps-ire
2. https://en.wikipedia.org/wiki/BRICS
3. https://www.isdp.eu/wp-content/uploads/2024/10/Backgrounder-BRICS-Oct-19.pdf
4. https://www.scmp.com/news/china/article/3303030/de-dollar-diplomacy-brics-interest-alternative-global-currency-stirs-trumps-ire
5. https://moderndiplomacy.eu/2025/03/27/brics-game-changing-blockchain-payment-system-the-future-of-global-transactions/

• Rising inflation and slowing growth spark renewed fears of stagflation.
• Stagflation puts the Fed in a no-win situation—fighting inflation risks hurting jobs, but easing up fuels inflation.
• Gold and silver can help protect retirement savings during economic turmoil.

Signs of Stagflation Grow

Investors are on edge as troubling signs emerge in the U.S. economy. The growing threat of stagflation, where inflation soars while jobs disappear, has them bracing for the worst. The Federal Reserve’s latest economic projections contributed to an 8% slump from an all-time high in the S&P 500 index. According to RSM Chief Economist Joe Brusuelas, we may be heading into a period of “stagflation-lite.” A potentially disastrous situation for retirement savings.¹

The Federal Reserve’s Stagflation Warning

The Federal Open Market Committee (FOMC) recently downgraded its economic growth outlook. They are predicting only a 1.7% expansion this year. That’s a 0.4 percentage point decline from its December forecast. At the same time, the committee raised its inflation expectations. Signaling uncertainty in its economic outlook.²

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Fed officials are now facing a dilemma. If inflation doesn’t approach the 2% target, interest rates may stay high for an extended period. The Fed is taking a “wait and see” approach. They want to see how tariffs affect inflation and economic growth.

In theory, a weak economy with rising unemployment should stop inflation. The two shouldn’t coexist. One of the major challenges of stagflation is that it offers no easy fixes. The Federal Reserve has a dual mandate. It aims to control inflation and maximize employment. However, this creates a conflict. If the Fed raises rates to combat inflation, it can slow down economic growth and increase unemployment. Conversely, lowering rates could fuel inflation further.

Chicago Fed President Austan Goolsbee summarized the challenge. He said, “There is nothing more uncomfortable than a stagflationary environment, where both sides of the mandate start going wrong. There is not a generic answer… Is it worse on the inflation side or the job market side? Higher tariffs raise prices and reduce output—that is a stagflationary impulse.”⁴

A Return to 1970s Stagflation?

The current economy isn’t as bad as the stagflation of the 1970s…yet. But some economists say the conditions are starting to appear. The stagflation crisis of the 1970s was driven by oil price shocks and poor economic policies. Similarly, today’s rising national debt and increased money printing contribute to inflationary pressures. The money supply issue today feels more urgent than it did in the 70s. Making the battle against inflation even tougher.

Market Reactions and Strategies

Bank of America recently warned that the risk of stagflation is growing. They told clients to move from risky assets to safer investments. “In recent weeks, some of the economic data has weakened and inflation has stayed sticky, so that’s caused questioning of whether we could be in a stagflationary environment,” said Jill Carey Hall, a U.S. equity strategist at BofA.⁵

JP Morgan’s trading desk warned that the Fed’s new economic forecasts suggest stagflation. Economist Torsten Slok of Apollo Management emphasized the seriousness of the issue. Saying, “the Fed is worried that the ongoing stagflation shock is going to intensify further.” Meanwhile, Bankrate analyst Mark Hamrick echoed this sentiment. He stated, “Recession risks are clearly rising.”⁶

Gold and Precious Metals: A Safe Haven

Investors aiming to protect their portfolios during stagflation should look at safe-haven assets. Gold and silver can help. Unlike stocks, precious metals often gain value during recessions. This happens as fiat currencies lose their purchasing power.

Phil Carr of FXStreet noted, “Precious metals like gold, silver, platinum tend to be big winners in inflationary environments.” Recent data from GSC Commodity Intelligence supports this. It showed a record $4.9 billion flow into gold in February, the highest ever recorded.⁷

Conclusion

The U.S. economy isn’t at the stagflation levels seen in the 1970s, but warning signs are clear. High inflation, slow economic growth, and rising unemployment present a challenging economic landscape. The Federal Reserve is unsure of its next moves. Making it hard to predict how long these conditions will last.

In such uncertain times, protecting your wealth with gold and silver can be a prudent move. A Gold IRA from American Hartford Gold can help safeguard your retirement savings from the effects of stagflation. Call us today at 800-462-0071 to learn how you can secure your financial future with precious metals.

Notes
1. https://www.reuters.com/markets/us/stagflation-radar-us-economy-no-repeat-70s-2025-03-25/
2. https://seekingalpha.com/article/4769977-is-1970s-stagflation-back
3. https://verifiedinvesting.com/blogs/verified-statistics/federal-reserve-sees-higher-inflation-slower-growth-ahead-stagflation
4. https://economictimes.indiatimes.com/news/international/global-trends/us-news-stagflation-on-the-radar-for-the-us-economy-fed-chair-jerome-powells-big-remark-on-1970s-nightmare/articleshow/119477721.cms?from=mdr
5. https://www.bloomberg.com/news/articles/2025-03-24/bofa-dusts-off-stagflation-playbook-for-stocks-as-fed-flags-risk?embedded-checkout=true
6. https://www.audacy.com/wwl/news/national/is-stagflation-rearing-its-head-in-the-u-s
7. https://www.fxstreet.com/analysis/could-stagflation-trigger-golds-next-big-move-video-202503121727

• The Fed left interest rates unchanged, reflecting uncertainty over inflation and growth.
• Gold has hit record highs even with high interest rates, signaling strong demand.
• A Gold IRA offers protection against inflation and recession in times of uncertainty

The Fed Keeps Rates Unchanged in Uncertain Climate

In the face of rising uncertainty, the Federal Reserve has decided to leave interest rates unchanged for the second straight meeting. That uncertainty isn’t just affecting policymakers. It’s spilling over into the lives of everyday Americans. With inflation running hotter than expected and the risk of a recession growing, now is the time for individuals to take steps to protect their savings. Opening a Gold IRA could provide a crucial hedge against both inflation and economic slowdown.

The Fed Holds Rates Steady – But for How Long?

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In its latest meeting, the Federal Reserve decided to leave interest rates unchanged at 4.25% to 4.5% for the second consecutive time. This decision reflects the Fed’s growing concern over the state of the economy and the challenges posed by persistent inflation and slow growth. Despite earlier projections for three rate cuts this year, Fed officials are now signaling just two cuts. While some are even suggesting there may be none at all.

The Fed’s latest economic forecast paints a mixed picture. Policymakers now expect the economy to grow by just 1.7% in 2025. Down from an earlier projection of 2.1%. Inflation is expected to rise to 2.8% by the end of the year. That’s higher than the 2.5% estimate made in December. Unemployment is also projected to increase to 4.4%.²

Fed Chair Jerome Powell acknowledged the growing uncertainty. He stated that “uncertainty around the economic outlook has increased.” While he maintains that the economy remains fundamentally strong, the combination of rising inflation and slowing growth puts the Fed in a difficult position. Lowering rates could stimulate growth but might worsen inflation. Keeping rates high could help fight inflation but risks dragging the economy into a recession.3

Trump and the Fed

The economic policies of President Trump are adding to the Fed’s dilemma. Powell has carefully avoided commenting directly on Trump’s tariff policy. But the effects are becoming harder to ignore. Trade wars typically fuel inflation while also slowing economic activity. A dangerous combination for the Fed that can result in stagflation.

Powell recently admitted that tariffs could delay progress on inflation, saying, “Clearly, some of it [inflation] is from tariffs.” If tariffs push inflation higher, the Fed may need to keep rates elevated longer than expected. But if tariffs slow growth too much, rate cuts could be needed to prevent a recession. This creates a policy trap, where the Fed is forced to choose between curbing inflation or supporting economic growth.

The Trump administration recognizes that economic disruption is possible as they fix and transform the economy. With a long-term view, Commerce Secretary Lutnik even suggested that a recession would be “worth it.”

Wall Street Braces for a Slowdown

The news of a recession sent stocks on a downturn. Powell admitted that there is now a 1 in 4 chance of a recession — a notable increase from previous estimates.

Market analysts are adjusting their forecasts in response to the shifting outlook. Goldman Sachs has lowered its 2025 GDP growth forecast from 2.2% to 1.7% and expects inflation to rise to 3% from the current 2.6%. JPMorgan Chase and Barclays have also trimmed their growth estimates. Barclays now predicts just 0.7% growth in 2024 — a steep drop from its earlier forecast of 2.5%.⁴

Interest rate cuts, once seen as a sign of economic relief, are now being interpreted as a warning sign. If the Fed cuts rates too aggressively, it could signal that the economy is in more trouble than previously thought. On the other hand, if the Fed holds rates too high for too long, it risks triggering a deeper slowdown.

The CME FedWatch tool currently shows a 32% chance of two 25-basis point cuts in 2025. Goldman Sachs anticipates two cuts this year and one more in 2026 — but only if tariffs don’t spark further inflation. Comerica predicts a single rate cut in July. Analysts expect the Fed to take a “wait and see” approach, likely cutting rates in June and December based on incoming data.⁵

Conclusion

As the Fed wrestles with a cloudy economic future, there are steps you can take to secure your savings. Gold has long been a trusted hedge against both inflation and recession. When inflation rises, gold tends to increase in value as the dollar weakens. During economic slowdowns, gold’s intrinsic value and safe-haven status make it a reliable store of wealth when other assets lose value.

Gold recently hit a record high of over $3,000 per ounce in March 2025 despite high interest rates, which usually weigh on gold prices. This shows strong demand from investors seeking long-term security. If the Fed begins cutting rates, gold prices are likely to climb even higher. Holding precious metals in a Gold IRA can provide the stability your portfolio needs.

To find long-term certainty in uncertain times, call American Hartford Gold at 800-462-0071 today to open your Gold IRA.

Notes:
1. https://www.nytimes.com/live/2025/03/19/business/fed-interest-rates
2. https://www.nytimes.com/live/2025/03/19/business/fed-interest-rates
3. https://www.nytimes.com/live/2025/03/19/business/fed-interest-rates
4. https://apnews.com/article/fed-federal-reserve-rates-trump-tariffs-inflation-prices-a9008f1bb081093cd149967e3e637c7b
5. https://www.foxbusiness.com/economy/how-many-rate-cuts-does-market-expect-year

 

• Goldman Sachs and Morgan Stanley lower growth forecasts amid rising trade tensions and inflation risks.
• Tech stock decline erases trillions in market value, signaling investor concerns over economic stability.
• Gold and silver remain safe assets for retirement protection during market downturns and inflation.

Goldman Sachs Slashes Market Forecast

Plunging markets sent a wake-up call to Wall Street. Goldman Sachs slashed its year-end target for the S&P 500 after it plunged nearly 10%. Uncertainty and tariff concerns rattled investor confidence and raised fears about broader economic trouble. Now, retirement savings find themselves squarely in the crosshairs.

Goldman Sachs cut their S&P 500 forecast to 6,200 from 6,500 after the market approached correction territory. The bank cited growing concerns over the U.S. economy and rising trade tensions.¹

Investor reaction highlights just how overvalued and overconcentrated the current market is. Investors had been enjoying steady gains. But the latest turmoil erased nearly $4 trillion in market value. The so-called Magnificent Seven tech stocks—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla—plunged 14% in just weeks. Their price-to-earnings (P/E) ratios fell from 30x to 26x. This sharp decline reflects growing investor demand for protection against mounting economic risks.²

Goldman Downgrades Growth Forecasts

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Goldman Sachs didn’t stop with the S&P 500 downgrade. The bank also lowered its U.S. GDP forecast for 2025 to 1.7% from 2.2% and cut its 2026 growth outlook as well. This marks Goldman’s first below-consensus outlook in over two and a half years. A signal that the bank sees deeper trouble ahead.⁴

Jan Hatzius, Goldman’s chief economist, explained the decision. She said that trade policies have gotten worse, and the administration expects tariffs to cause short-term economic trouble.

Goldman warned that tariffs could have several damaging effects. Including: higher consumer prices, tighter financial conditions, delayed corporate investment.

Goldman’s Chief Equity Strategist lowered the firm’s forecast for S&P 500 earnings growth to 7% from 9% for 2025. He said, “Weaker economic activity usually means weaker corporate earnings growth.”⁵

Signs of a Slowing Economy

The economic slowdown isn’t just a forecast—it’s already happening. U.S. GDP growth fell to 2.3% in the fourth quarter, down from 3.1% in the third quarter. The stock market has been on a rocky path higher, but that climb now looks increasingly unstable.

Lori Calvasina is head of U.S. equity strategy at RBC Capital Markets. She noted that the market can likely handle a 5–10% drop. However, she warned that the risks of a deeper pullback have increased. Saying that if things drop more than 10%, they are likely to keep falling to 20%. A drop of that magnitude would signal a bear market and could further shake investor confidence.⁶

Morgan Stanley Also Lowers Forecasts

It’s not just Goldman Sachs raising alarms. Morgan Stanley also cut its U.S. growth outlook for 2025 and 2026, citing the rising “intensity” of trade policy. The firm expects inflation to rise alongside slower growth. A dangerous combination that could weigh heavily on the economy.

Morgan Stanley analysts explained, “If our narrative entering the year was ‘slower growth, stickier inflation,’ we now think ‘slower growth, firmer inflation.’”⁷

Disconnected from Fundamentals

Hedge funds and big investors are pulling back their positions, making the market drop even sharper. This selloff reminds us that the market doesn’t just run on facts and figures. Emotions and big moves can drive it too. A single change in position can set off a chain reaction, causing the downturn to snowball quickly and make the market harder to predict.

Investors are looking for safety, and the higher equity risk premium is adding to market jitters. The S&P 500 is now down 9% from its peak, reflecting growing concern over corporate earnings and economic uncertainty. Whether buyers will step in to stabilize the market or the downturn will deepen remains to be seen.

Why This Matters for Retirees

For retirees and those nearing retirement, the predicted slowdown in economic growth, weaker corporate earnings, and rising inflation pose serious risks. A stock market decline impacts the value of 401(k) plans and other retirement accounts.

For example:

A 20% market drop (bear market) historically takes about four months to recover—assuming no further declines.

Inflation reduces real returns: A 10.5% nominal return with 8.5% inflation yields only a 2% real gain.

Fixed-income assets like bonds struggle during inflationary periods, eroding purchasing power.

Younger investors have time to recover from market downturns. But for retirees, the combination of slower growth, weaker earnings, and higher inflation could erode their savings at a time when they need stability the most.

How to Protect Your Retirement

During times of market swings and economic doubt, physical gold and silver remain steady stores of value. Gold has long been considered a hedge against inflation and market downturns. And it’s showing strength even as stocks falter – continuing to reach record highs on safe haven demand.

A Gold IRA lets you keep physical gold in your retirement account. This helps guard against market swings and inflation. Gold offers a level of security that paper assets can’t match.

Conclusion

If you’re concerned about how the market downturn and slowing economy could affect your retirement, now is the time to act. Moving some of your retirement funds into a Gold IRA can help protect your wealth and secure your financial future.

Call American Hartford Gold at 800-462-0071 to learn more about how gold and silver can help safeguard your retirement savings.

Notes:
1. https://finance.yahoo.com/news/goldman-sachs-cuts-sp-500-year-end-target-to-6200-as-economic-outlook-weighs-on-profit-forecasts-135231633.html
2. https://finance.yahoo.com/news/wall-street-shock-4-trillion-160722946.html
3. https://finance.yahoo.com/news/goldman-sachs-cuts-sp-500-year-end-target-to-6200-as-economic-outlook-weighs-on-profit-forecasts-135231633.html
4. https://finance.yahoo.com/news/goldman-sachs-cuts-sp-500-year-end-target-to-6200-as-economic-outlook-weighs-on-profit-forecasts-135231633.html
5. https://finance.yahoo.com/news/goldman-sachs-cuts-sp-500-year-end-target-to-6200-as-economic-outlook-weighs-on-profit-forecasts-135231633.html
6. https://finance.yahoo.com/news/goldman-sachs-cuts-sp-500-year-end-target-to-6200-as-economic-outlook-weighs-on-profit-forecasts-135231633.html
7. https://www.investing.com/news/economy-news/morgan-stanley-sees-lower-us-growth-higher-inflation-amid-tariff-uncertainty-3914469