For all the talk about combating inflation, the Federal Reserve is likely to reverse course and continue to print substantial amounts of money because doing otherwise would threaten the federal government with insolvency, according to macroeconomic analyst Luke Gromen.
Less than two weeks after Nomura became the first bank to one-up Deutsche Bank's "US recession" base case, by forecasting a contraction in the US economy in late 2022 (unlike DB's 2023 prediction), coupled with a sharp Fed pivot and rate cuts all the way back to zero...
“Where broader markets remain negative, pressured by inflation and central bank hawkishness in taming prices, we see investors holding fast to gold ETFs as a risk-off haven,” said Hitzeman, whose company offers several precious metals products to investors.
Will Powell jawbone that expectation away, or embrace it as policy?
“Today, we face supply shocks in a context of much higher debt levels, implying that we are heading for a combination of 1970s-style stagflation and 2008-style debt crises – that is, a stagflationary debt crisis,” Roubini said.