- Markets reacted badly last week to Federal Reserve chairman Jerome Powell’s statements outlining the Fed’s initial forecast for the coming year.
- With inflation clearly no longer being “transitory,” with the Consumer Price Index accelerating to 7 percent in December, Powell has turned increasingly hawkish.
- From its vast increase in the money supply to supply chain disruptions, commodity and labor shortages, elevated shipping and insurance costs, and geopolitical hazards, the Fed will have to raise rates or risk completely losing control of what is already a deteriorating situation.
For further details see:
Quantitative Tightening Won't Stop Price Inflation