Zero Hedge/Simon White/7-11-2023
“Where things could go seriously awry for stocks is if Powell’s immediate response to re-accelerating inflation is to go ‘full Volcker. But I find that unlikely. Volcker was path dependent: we had to go through Arthur Burns and William Miller to get to the point where their successor had a mandate to cause a deep recession to neuter inflation. Powell isn’t there yet. On top of that, next year is an election year, and resisting cutting rates as the economy weakens might be the closest the Fed gets to hiking.”
USAGOLD note: White is Bloomberg’s macro strategist. He says, “We have several of the same dynamics today as in the 1970s.”
