Bloomberg/Editorial Board/10-17-2022
“If the Federal Reserve was hoping for some sign that inflation is subsiding, it was cruelly disabused by the latest figures for consumer prices. …The message was clear: Far from relaxing its recent pace of monetary tightening, the Fed might have to raise interest rates faster and further than expected.”
USAGOLD note: Given the current configuration of the yield on the !0-year Treasury versus the current inflation rate, it is difficult to believe that the Fed will get ahead of the curve anytime soon. Many analysts believe that the trigger for a pivot will be a credit event instigated by tight monetary policy, rather than a sharp turnaround on the inflation front. Bloomberg advises a Fed that honesty is the best policy – as a means to restoring its flagging credibility. Whether or not the it can or will jump through that hoop remains to be seen.
