Yahoo!Finance/Chistopher Antsey-Bloomberg/2-11-2022
“Former Treasury Secretary Lawrence Summers said that the Federal Reserve ought to hold an immediate meeting to end its quantitative easing program — now scheduled to end next month — to underline its determination to tame inflation.”
USAGOLD note: It is highly doubtful that the Fed will follow Larry Summers’ advice. Summers continues to channel former Fed chairman Paul Volcker, who 40 years ago advocated and deployed policies similar to what he now recommends. The Fed is miles away from reintroducing Volkerism. That said, the real value in Summers’ public posture from an investor’s standpoint is in his rendering of cause and effect. “It is nothing short of preposterous,” he says, “that in an economy with 7.5% inflation, that in an economy with the tightest labor market we’ve seen in two generations, that the central bank is still as we speak growing its balance sheet.”
