Bloomberg/Bill Dudley/8-1-2022
“Investors have lately become strangely optimistic that the Federal Reserve won’t have to tighten monetary policy much further, bidding up stocks and bonds amid hopes that the Federal Reserve will soon get inflation under control. This wishful thinking is both unfounded and counterproductive.”
USAGOLD note: Unfounded? Counterproductive? The exact words of the Fed chairman were as follows: “As the stance of monetary policy tightens further, it likely will become appropriate to slow the pace of increases while we assess how our cumulative policy adjustments are affecting the economy and inflation.” Is it wishful thinking to take the Fed chairman at his word? We are in the group that sees both a recession and inflation as much bigger problems than Washington cares to admit.
