MarketWatch/Joseph Adinolfi/9-24-2022
“When we had all commodities going up at rapid rates, Chairman Powell and the Fed said, ‘We don’t see any inflation. We see no need to raise interest rates in 2022.’ Now when all those very same commodities and asset prices are going down, he says, ‘Stubborn inflation that requires the Fed to stay tight all the way through 2023.’ It makes absolutely no sense to me whatsoever.’” – Jeremy Siegel
USAGOLD note: This is what happens when the Fed becomes too immersed in the politics of the day rather than tending to the business of keeping the economy stable. One mistake leads to another until markets begin to lose confidence. From the outside, it begins to look like policy direction is reduced to a mere flip of the coin. “I think the Fed is just way too tight,” says the unhappy professor Siegel. “They’re making exactly the same mistake on the other side that they made a year ago.”
