Bloomberg/Liz Capo McCormick, Garfield Reynolds and Reade Pickert/5-1-2023
“Financial markets are caught up in a tug of war between lingering inflation and concern about a recession as they try to guess the next move by the Federal Reserve. That means investors are potentially ignoring a far more dangerous outcome: stagflation. A mix of slowing economic growth combined with persistent inflation has the potential to dash hopes for a reversal in the Fed’s aggressive campaign to tame inflation with higher interest rates.”
USAGOLD note: Gold is among the assets favored by fund managers for a stagflationary economy, says Bloomberg BNN. Stagflation, it says, represents a “disturbing macroeconomic backdrop” for money managers.
