“It’s really hard for central banks to fight that. I’m cautious to use the word, but it feels at the moment that we’re going through a period … [of] transitory stagflation.” – Nathan Sheets, Citigroup
USAGOLD note: Transitory stagflation is as mythical a beast as transitory inflation. Sheets mentions that the current mix of signals is the Fed’s “worst nightmare” because it is facing both a recession and inflation. It can’t fight one without giving impetus to the other.