In a recent Bloomberg article, a group of economists voiced their fears that the Federal Reserve’s inflation fight may create an unnecessarily deep downturn. However, the Federal Reserve does not create a downturn due to rate hikes; it creates the foundations of a crisis by unnecessarily lowering rates to negative territory and aggressively increasing its … Continue reading Fed pivot is not an investment thesis
This week, the Federal Reserve gave the most dovish “hawkish” statement ever. An apparent aggressive tapering that, in reality, means maintaining very low rates and massive repurchases for longer. Inflation has skyrocketed and aggressive monetary policy is the key factor in understanding it. I already explained it in my article “The Myth of Cost-Push Inflation”. … Continue reading The Fed’s Dovish “Tapering” And The ECB
The monumental mistake of the Federal Reserve cutting rates this week can only be understood in the context of the rising God’s complex of central planners. An overwhelming combination of ignorance and arrogance.
If there is something that is evident is that the United States does not need a rate cut. With the economy growing at 2.1%, unemployment at 3.6%, creating 170,000 jobs per month, and estimated underlying core inflation of 2%, no objective data justifies cutting rates that are already artificially low. Wages are rising by 3% … Continue reading The Fed’s Unnecessary Rate Cut